Caesars Entertainment (NASDAQ:CZR) Issues Quarterly Earnings Results, Misses Expectations By $1.05 EPS

Caesars Entertainment (NASDAQ:CZR) posted its quarterly earnings data on Tuesday. The company reported ($1.23) earnings per share for the quarter, missing the consensus estimate of ($0.18) by ($1.05), FiscalAI reports. Caesars Entertainment had a negative net margin of 2.12% and a negative return on equity of 5.76%. The business had revenue of $2.92 billion during the quarter, compared to the consensus estimate of $2.89 billion. During the same period in the prior year, the company posted $0.05 earnings per share. The firm’s revenue was up 4.2% compared to the same quarter last year.

Here are the key takeaways from Caesars Entertainment’s conference call:

• Caesars reported solid results for FY2025 and Q4 — full‑year same‑store enterprise net revenues rose by $266M (2%), while Q4 consolidated net revenues were $2.9B (+4%) with adjusted EBITDA of $901M (+2%).
• The Digital segment set a Q4 EBITDA record at $85M and delivered FY net revenue of $1.4B (+21%) and EBITDA of $236M (+100%), with tech upgrades (universal wallet in 26 jurisdictions) and a target of ~20% top‑line growth with 50% flow‑through.
• Las Vegas softness continues: same‑store adjusted EBITDA declined 6% as occupancy fell to 92% (from 96.5%) and ADR was down 5%; management expects sequential improvement driven by group/convention demand but leisure recovery remains uncertain.
• Regional results were mixed — revenues +4% driven by Danville/New Orleans and rewards reinvestment, but Q4 EBITDA dipped due to adverse winter weather; near‑term catalysts include Windsor becoming owned in March, a $200M Tahoe renovation completing in summer, and Harrah’s Oklahoma opening April 9.
• Balance‑sheet and capital allocation outlook is constructive: Caesars reduced debt in 2025, expects lower CapEx, interest expense and sub‑$100M cash taxes in 2026, and plans to deploy free cash flow to a mix of debt paydown and opportunistic share repurchases (no near‑term digital spin planned).

Caesars Entertainment Trading Up 4.5%

NASDAQ:CZR opened at $18.95 on Wednesday. The firm has a market cap of $3.87 billion, a P/E ratio of -16.48, a P/E/G ratio of 23.49 and a beta of 2.03. The company has a debt-to-equity ratio of 6.23, a quick ratio of 0.76 and a current ratio of 0.78. Caesars Entertainment has a 52 week low of $17.86 and a 52 week high of $39.86. The firm’s fifty day moving average is $22.82 and its 200-day moving average is $23.41.

Hedge Funds Weigh In On Caesars Entertainment

A number of institutional investors and hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd boosted its stake in Caesars Entertainment by 456.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,119 shares of the company’s stock worth $26,000 after acquiring an additional 918 shares in the last quarter. Sunbelt Securities Inc. boosted its holdings in Caesars Entertainment by 181.6% in the third quarter. Sunbelt Securities Inc. now owns 1,042 shares of the company’s stock worth $28,000 after acquiring an additional 672 shares in the last quarter. Quarry LP acquired a new stake in Caesars Entertainment in the third quarter valued at approximately $68,000. Parallel Advisors LLC increased its holdings in shares of Caesars Entertainment by 192.6% during the fourth quarter. Parallel Advisors LLC now owns 3,748 shares of the company’s stock valued at $88,000 after acquiring an additional 2,467 shares in the last quarter. Finally, Kestra Advisory Services LLC acquired a new position in shares of Caesars Entertainment during the fourth quarter worth approximately $101,000. 91.79% of the stock is currently owned by institutional investors.

Key Stories Impacting Caesars Entertainment

Here are the key news stories impacting Caesars Entertainment this week:

• Positive Sentiment: Digital business delivered a record quarter, driving revenue growth and offsetting weaker Las Vegas trends; management highlighted strong digital momentum as a growth lever. Caesars Entertainment Inc (CZR) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Top-line beat/inline: Q4 revenue of ~$2.9B was up ~4.2% YoY and slightly above consensus, supporting near-term cash generation and validating parts of the operating plan. Q4 Sales Beat
• Neutral Sentiment: Wall Street support remains: several recent buy/outperform ratings and a median 6‑month price target near $31 provide analyst-driven support even after volatility. Quiver Quant Coverage
• Neutral Sentiment: Management commentary and slide deck/transcript are available; CEO described the outlook as stable — useful for gauging guidance changes and expense priorities. Earnings Call Transcript
• Positive Sentiment: Unusual options activity (spike in call buying) suggests some traders are positioning for upside or a bounce in the near term. Options Flow Note
• Negative Sentiment: Big EPS miss: GAAP net loss of ~$250M and EPS of -$1.23 far below estimates, driving headline risk and valuation pressure; operating profit and net margin weakened year-over-year. Business Wire Release
• Negative Sentiment: Some coverage notes the EPS miss pushed the stock to a new 52‑week low after hours — a technical negative that can trigger additional selling or increased volatility. 52-Week Low Article
• Negative Sentiment: High leverage remains a structural risk (debt-to-equity elevated); weaker margins and cash flow volatility increase sensitivity to consumer cycles and interest rates. Zacks Coverage

Analyst Ratings Changes

A number of research firms have weighed in on CZR. Jefferies Financial Group downgraded Caesars Entertainment from a “buy” rating to a “hold” rating and decreased their price objective for the company from $39.00 to $22.00 in a report on Tuesday, November 4th. Truist Financial dropped their target price on Caesars Entertainment from $32.00 to $30.00 and set a “buy” rating for the company in a research report on Wednesday, October 29th. Deutsche Bank Aktiengesellschaft reduced their target price on Caesars Entertainment from $50.00 to $36.00 and set a “buy” rating on the stock in a report on Wednesday, October 29th. Citigroup reissued a “market outperform” rating on shares of Caesars Entertainment in a research note on Monday, December 1st. Finally, JPMorgan Chase & Co. cut their price objective on shares of Caesars Entertainment from $43.00 to $38.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Caesars Entertainment presently has an average rating of “Moderate Buy” and a consensus target price of $34.29.

Caesars Entertainment Company Profile

Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.

The company traces its lineage to the founding of Harrah’s by William F.