Unpacking Q4 Earnings: Caesars Entertainment (NASDAQ:CZR) In The Context Of Other Casino Operator Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how casino operator stocks fared in Q4, starting with Caesars Entertainment (NASDAQ:CZR).

Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.

The 9 casino operator stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.5%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the casino operator stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.1% on average since the previous earnings results.

Caesars Entertainment (NASDAQ:CZR)

Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.

Caesars Entertainment reported revenues of $2.83 billion, flat year on year, falling short of analyst expectations by 1.3%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates. A lone bright spot was its $304 million of Digital segment revenue, which beat analysts' expectations.

Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, “Our fourth quarter operating results demonstrated consolidated net revenue growth, reduced net loss and stable consolidated Adjusted EBITDA year over year. Results were driven by a 28% year-over-year increase in Caesars Digital net revenue that generated a 10% Adjusted EBITDA margin in the quarter. Full year results benefited from a 78% increase in Caesars Digital net revenues to approximately $1.0 billion, and an over $700 million improvement in this segment’s Adjusted EBITDA.”

The stock is down 3.5% since the results and currently trades at $40.2.

Read our full report on Caesars Entertainment here, it's free.

Best Q4: Wynn Resorts (NASDAQ:WYNN)

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Wynn Resorts reported revenues of $1.84 billion, up 83.1% year on year, outperforming analyst expectations by 5.9%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates. However, we note its earnings received a one-time boost from an income tax benefit related to the valuation allowance on certain deferred tax assets. Nevertheless, its revenue outperformed Wall Street's estimates, driven by strong customer spending in Macau and Las Vegas.

Wynn Resorts achieved the fastest revenue growth among its peers. The stock is up 1.3% since the results and currently trades at $101.1.

Is now the time to buy Wynn Resorts? Access our full analysis of the earnings results here, it's free.

Weakest Q4: PENN Entertainment (NASDAQ:PENN)

Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

PENN Entertainment reported revenues of $1.40 billion, down 12% year on year, falling short of analyst expectations by 9%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

PENN Entertainment had the weakest performance against analyst estimates in the group. The stock is down 25.1% since the results and currently trades at $16.85.

Read our full analysis of PENN Entertainment's results here.

Red Rock Resorts (NASDAQ:RRR)

Founded in 1976, Red Rock Resorts (NASDAQ:RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.

Red Rock Resorts reported revenues of $462.7 million, up 8.8% year on year, surpassing analyst expectations by 4.8%. It was an impressive quarter for the company, with a solid beat of analysts' revenue and EPS estimates.

The stock is up 6.9% since the results and currently trades at $59.1.

Read our full, actionable report on Red Rock Resorts here, it's free.

Monarch (NASDAQ:MCRI)

Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Monarch reported revenues of $128.2 million, up 6.3% year on year, surpassing analyst expectations by 8.2%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' earnings estimates.

Monarch achieved the biggest analyst estimates beat among its peers. The stock is up 2.3% since the results and currently trades at $70.55.

Read our full, actionable report on Monarch here, it's free.

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