Analyst Estimates: Here's What Brokers Think Of Caesars Entertainment, Inc. (NASDAQ:CZR) After Its First-Quarter Report

Caesars Entertainment, Inc. (NASDAQ:CZR) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a pretty bad result overall; while revenues were in line with expectations at US$2.8b, statutory losses exploded to US$0.54 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Caesars Entertainment's 14 analysts are forecasting 2025 revenues to be US$11.5b, approximately in line with the last 12 months. Caesars Entertainment is also expected to turn profitable, with statutory earnings of US$0.20 per share. In the lead-up to this report, the analysts had been modelling revenues of US$11.5b and earnings per share (EPS) of US$1.03 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

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It might be a surprise to learn that the consensus price target was broadly unchanged at US$42.80, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Caesars Entertainment, with the most bullish analyst valuing it at US$62.00 and the most bearish at US$28.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Caesars Entertainment's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Caesars Entertainment's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Caesars Entertainment.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$42.80, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Caesars Entertainment going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Caesars Entertainment's balance sheet, and whether we think Caesars Entertainment is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.