Stock in Focus: Caesars Entertainment Corporation (NASDAQ: CZR)

Shares of Caesars Entertainment Corporation (NASDAQ: CZR) closed the trading at a price of $10.20 with the positive/negative change of +12.21%. In the past session approximately 88,256,755 shares were exchanged against the average daily trading volume of 15,941,998 shares. The stock touched to the maximum level of $11.28, and it reached the lower level of $8.88 in past session. The stock’s market capitalization has now valued at $6.81B. The stock’s low price in its 52 week is $8.55 per share while $14.50 as the 52 week high price.

Caesars Entertainment Corporation (CZR) recently stated second quarter of 2018 results as summarized in the discussion below, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.

Second Quarter Highlights

  • Second quarter net revenues raised $1.11B, from $1.01Bto $2.12B, Because of the inclusion of the results of CEOC, LLC (“CEOC”), which emerged from bankruptcy in the fourth quarter of 2017.
  • Net income improved $1,461M, from a net loss of $1,432Mto net income of $29M, Because of restructuring charges in the previous year.
  • CEC subsidiary executed a $1Bone year forward interest rate swap, increasing its fixed debt percentage to 60%.

Same-Store Highlights

  • Same-store net revenues improved 2.8%, or $57M, from $2.06Bto $2.12B.
  • Same-store adjusted EBITDAR raised 13.1% or $72M, from $551Mto $623M, driven by revenue growth in gaming and hospitality, and operating cost reduction.
  • Same-store adjusted EBITDAR margin expanded 270 basis points to 29.4%.
  • Las Vegas RevPAR raised 3.5% to $136, within the Company’s guidance range. Las Vegas ADR raised $7to $145.
  • Marketing costs reduced 6.6%, or $34M, including $25Mof contra-revenue, reflecting the Company’s continued focus in this area.

Financial Results

We view each casino property as an operating section and aggregate such casino properties into three regionally-focused reportable sections: (i) Las Vegas, (ii) Other U.S. and (iii) All Other, which is consistent with how we manage the business. The results of our reportable sections presented below are consistent with the way management assesses these results and allocates resources, which is a consolidated view that adjusts for the effect of certain transactions between reportable sections within Caesars. “All Other” includes managed, international and other properties as well as parent and other adjustments to reconcile to consolidated Caesars results.

The inclusion of CEOC’s results raised CEC net revenues by $1.11B. The year-over-year comparison is not meaningful Because of the magnitude of consolidating CEOC’s portfolio.

Same-store net revenues improved 2.8%, driven by strength in Las Vegas. Las Vegas gaming revenue raised 10.7%, led by important year-over-year baccarat growth. Las Vegas ADR and RevPAR grew 5.2% and 3.5%, respectively, driving year-over-year non-gaming revenue improvement. Las Vegas occupancy was 93.9% in the quarter, down from 95.5% in 2017, primarily Because of 36,000 incremental room nights available. A work stoppage at Caesars Windsor temporarily lowered reimbursed management cost revenue, driving the 8.8% decline in All Other regional revenue. Hold had a favorable impact of $8M contrast to the previous year and was $21M above our expectations.

The stock RSI amounts to 55.44. (CZR) debt to equity ratio was 5.69 while current ratio was 2.00. The Beta factor was 0.74. The company operates 36,000 slot machines and 2,700 table games, as well as other games comprising keno, poker, and race and sports books; and buffets, restaurants, bars, nightclubs, and lounges located throughout its casinos, as well as banquets and room service. As of March 7, 2018, it owned and operated 47 casinos. EPS growth ratio for the past five years was 8.20% while Sales growth for the past five years was -9.90%.


Back to top button