The 10-second takeaway
For the quarter ended March 31 (Q1), Caesars Entertainment missed slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP loss per share shrank. GAAP loss per share contracted.
Gross margins shrank, operating margins dropped, net margins increased.
Caesars Entertainment reported revenue of $2.14 billion. The seven analysts polled by S&P Capital IQ predicted a top line of $2.18 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$1.09. The five earnings estimates compiled by S&P Capital IQ predicted -$1.59 per share. Non-GAAP EPS were -$1.09 for Q1 against -$1.25 per share for the prior-year quarter. GAAP EPS were -$1.74 for Q1 compared to -$2.24 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.8%, much worse than the prior-year quarter. Operating margin was 10.7%, 60 basis points worse than the prior-year quarter. Net margin was -10.2%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.22 billion. On the bottom line, the average EPS estimate is -$1.50.
Next year's average estimate for revenue is $8.84 billion. The average EPS estimate is -$6.30.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 18 members out of 89 rating the stock outperform, and 71 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Caesars Entertainment a green thumbs-up, and 30 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Caesars Entertainment is underperform, with an average price target of $8.50.
Looking for alternatives to Caesars Entertainment? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Caesars Entertainment to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.