Shares of Caesars Entertainment Inc (CZR 15.23%) fell on Wednesday, finishing the day down 15.2%. The move came as the S&P 500 was flat and the Nasdaq Composite gained 0.5%.
The casino operator saw its stock plummet today after it reported quarterly earnings that underwhelmed.
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Caesars Entertainment misses Q3 targets
Caesars Entertainment reported its third-quarter numbers today, failing to meet Wall Street's targets. The company revealed a loss of $0.27 a share on $2.87 billion in sales, when consensus estimates came in at a per-share loss of $0.09 on $2.89 billion in sales.
NASDAQ: CZR
Key Data Points
Las Vegas has been struggling with seasonal traffic declining, so while Caesars' regional casinos grew their top line, the company's Las Vegas sales fell nearly 10% year over year.
CEO Tom Reeg told investors that there "has been softness in leisure demand for Las Vegas in the summer months" and that "it was a difficult summer."
Online gambling is largely to blame
The decline in Las Vegas traffic and Caesars' poor performance stands in contrast to the explosion in gaming at large. While Caesars focuses on its brick-and-mortar casinos, many gamblers today prefer to place their bets online. I don't think this trend is reversing anytime soon and would avoid the stock.
