{"id":255099,"date":"2023-01-23T09:55:50","date_gmt":"2023-01-23T15:55:50","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=255099"},"modified":"2023-01-23T21:25:45","modified_gmt":"2023-01-24T03:25:45","slug":"caesars-entertainment-soars-following-bullish-q4-earnings-preview","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/","title":{"rendered":"Caesars Surges Following Preliminary Q4 Earnings Glimpse"},"content":{"rendered":"

Shares of Caesars Entertainment (NASDAQ: CZR) popped early Monday. That’s after the casino operator delivered a bullish, advanced look at its fourth-quarter earnings.<\/p>\n

\"Caesars\"
Caesars Palace Las Vegas. The operator pre-announced Q4 earnings that beat analysts’ forecasts. (Image: YouTube)<\/figcaption><\/figure>\n

The company said it expects revenue for the December quarter to come in at $2.81 billion to $2.83 billion, ahead of the $2.78 billion analysts estimated. Caesars\u2019 net loss is forecast to be $129 million to $257 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) is estimated to be $947 million to $967 million, easily topping the $581 million posted in the same period last year.<\/p>\n

According to a Form 8-K filing with the Securities and Exchange Commission (SEC), the Flamingo operator is expecting fourth-quarter EBITDA from its Las Vegas Strip venues<\/a> to be $534 million to $540 million, while EBITDA from regional properties is estimated to be $440 million to $446 million. Caesars is the second-largest operator on the Strip.<\/p>\n

We believe 4Q22E demonstrated high occupancy and room rate, which has continued into 1Q23E. As previously written, we see solid potential upside to CY23E Las Vegas segment YoY EBITDA consensus of -1% year-over-year,\u201d<\/strong> wrote B. Riley analyst David Bain in a note to clients today.<\/p><\/blockquote>\n

Bain cited recovery in convention bookings, the return of international and older tourists, and events, such as the Las Vegas Grand Prix and the opening of the MSG Sphere<\/a>, as potential 2023 for Caesars\u2019 Strip properties. Bain rates the stock a \u201cbuy\u201d with a $102 price target, implying it can more than double from current levels.<\/p>\n

Caesars Digital Unit Nearing Profitability<\/h2>\n

Caesars’ digital unit, which includes Caesars Sportsbook, is closing in on profitability. In fact, if not for Jim \u201cMattress Mack\u201d McIngvale\u2019s<\/a> record-setting haul on the Houston Astros winning the 2022 World Series, the division would have been profitable in the fourth quarter.<\/p>\n

The gaming company forecast a fourth-quarter digital loss of $5 million. But that\u2019s well ahead of the $25 million loss Wall Street expected.<\/p>\n

Adjusted for CZR\u2019s high-profile bet loss from \u2018Mattress Mack,\u2019 we calculate CZR would have posted +~$25M of Digital EBITDA,\u201d<\/strong> added Bain. \u201cCombined with continued EBITDA benefits to its land-based business, we believe online has an opportunity to fuel CZR\u2019s forward valuation multiple versus being a drag on it. We believe CZR\u2019s Digital EBITDA may be flat this year versus consensus of ($50M).\u201d<\/strong><\/p><\/blockquote>\n

The outlook for lower losses and potential profitability in the sportsbook unit is vital for Caesars at a time when rivals are either profitable or close to getting there<\/a>.<\/p>\n

Caesars Debt Sale<\/h2>\n

Along with the earnings pre-announcement, Caesars revealed that it\u2019s selling $1.25 billion in senior unsecured notes due in 2030, and that it\u2019s gaining access to a new $1.75 billion senior secured term loan facility.<\/p>\n

Riley\u2019s Bain expects those proceeds will be used to pay off a senior loan maturing in 2024, which had approximately $3.42 billion outstanding as of December.<\/strong><\/p>\n

\u201cEssentially, we expect the rate on debt to be comparable with an extended maturity,\u201d according to the analyst.<\/p>\n

While Caesars is buying time to pay down the debt, it\u2019s beneficial to the company that it\u2019s not incurring a higher interest rate to do so.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Caesars Entertainment (NASDAQ: CZR) popped early Monday. That’s after the casino operator delivered a bullish, advanced look at its fourth-quarter earnings. The company said it expects revenue for the December quarter to come in at $2.81 billion to $2.83 billion, ahead of the $2.78 billion analysts estimated. Caesars\u2019 net loss is forecast to […]<\/p>\n","protected":false},"author":46,"featured_media":255103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,33810],"tags":[81897,81903,81898],"acf":[],"yoast_head":"\nCaesars Entertainment Soars Following Bullish Q4 Earnings Preview<\/title>\n<meta name=\"description\" content=\"Caesars Entertainment jumps after issuing upbeat Q4 earnings preview.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Entertainment Soars Following Bullish Q4 Earnings Preview\" \/>\n<meta property=\"og:description\" content=\"Caesars Entertainment jumps after issuing upbeat Q4 earnings preview.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-23T15:55:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-24T03:25:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/\",\"name\":\"Caesars Entertainment Soars Following Bullish Q4 Earnings Preview\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-1.jpg\",\"datePublished\":\"2023-01-23T15:55:50+00:00\",\"dateModified\":\"2023-01-24T03:25:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars Entertainment jumps after issuing upbeat Q4 earnings preview.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-entertainment-soars-following-bullish-q4-earnings-preview\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-1.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Caesars Palace Las Vegas. 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