Caesars Previews Q4 Results, Likely to Miss EBITDA, Revenue Estimates

Caesars Entertainment (NASDAQ: CZR) delivered a preliminary survey of its fourth-quarter results to investors on Thursday, and it appears the companion will likely escape analysts’ earnings before interest, taxes, depreciation, and amortization (EBITDA), and sales estimates.

In a Form 8-K filing with the Securities and Exchange Commission (SEC), the Harrah’s manipulator said it expects revenue of $2.815 1000000000 to $2.835 billion for the December quarter, easily beneath the $2.89 one million million Wall Street expected. On the Las Vegas Strip, where Caesars is the second-largest operator, revenue is expected to live $1.088 1000000000000 to $1.094 billion, cut down from $1.154 1000000000 a yr earlier.

The gaming company’s fourth-quarter red ink is calculate to set out from $4 meg to $157 million with Earnings Before Interest Taxes Depreciation and Amortization estimated to follow $920 one thousand thousand to $940 million. Analysts expected $957 million.

Caesars has non finalized its financial financial statement closing unconscious process for the trio months ended Dec 31, 2023. During this process, Caesars may describe items that would require it to create adjustments to the expected preliminary operating results,” according to the regulatory filing. “In increase to its modus operandi closing procedures, Caesars has non completed its one-year taxation purvey or reached its final conclusions related to the assumptions used inward determining the estimated reasonable economic value of its indefinite lived nonphysical assets and reporting units associated with goodwill.”

The gaming keep company is scheduled to deliver its financial update for the Dec quarter on Feb 20 after the closely of US markets.

Caesars Las Vegas Ops Decent, But …

Caesars said its Strip tenancy for the final threesome months of 2023 jumped to 97.9% from 95.5% a twelvemonth earlier. That fig likely would have been better if non for the loss of 65K way nights due to twist at Caesars Palace and Paris.

On the other hand, on that point are some indications that the manipulator didn’t reap Las Vegas Grand Prix benefits on par with rivals MGM Resorts International (NYSE: MGM) and Wynn Resorts (NASDAQ: WYNN). Caesars said its fourth-quarter tabular array spunky set down decreased 1% while table hold cut down to 21% from 23% a year prior.

Despite the disappointing fourth-quarter preview, Caesars is favourite(a) past some analysts. Stifel’s Steven Wieczynski reiterated a “buy” rating and $67 damage mark on the stock up today.

“With CZR you get under one's skin what we trust is the best direction squad inward gaming and a companion that should produce important unloosen cash rate of flow inwards any normalized environment,” observed the analyst. “We believe the troupe put up delever (sic) their equilibrate sheet, which should, in turn, take longer-term investors into this story.”

Caesars iGaming Update

In what’s becoming a familiar forbear across the sports wagering industry, a unsmooth November appears to make dented results for Caesars Digital in the in conclusion ternion months of 2023.

Caesars Digital mesh revenues, meshing income (loss), and Adjusted EBITDA during the quaternary canton reflected improved sports betting and iGaming handgrip as compared to the same prior yr period,” said the operator inward the SEC filing. “Sports betting carry was negatively impacted inwards the month of November and fell at a lower place our typical range. We estimation the negative impact of depression sports betting sustain in November to be roughly $44 billion inward nett revenues, based on our typical make range, and more or less $29 1000000 of sack income and Adjusted EBITDA.”

Wieczynski added that he’s confident Caesars management testament eventually follow able-bodied to wring time value from the iGaming/sports betting unit.

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