Simply Wall St
3 min read
Caesars Entertainment, Inc. (NASDAQ:CZR) came out with its quarterly 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$2.9b, statutory losses exploded to US$0.48 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Caesars Entertainment from 17 analysts is for revenues of US$11.8b in 2026. If met, it would imply a credible 2.3% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 73% to US$0.64. Before this latest report, the consensus had been expecting revenues of US$11.8b and US$0.23 per share in losses. While this year’s revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Check out our latest analysis for Caesars Entertainment
As a result, there was no major change to the consensus price target of US$33.22, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on Caesars Entertainment, with the most bullish analyst valuing it at US$41.00 and the most bearish at US$24.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Caesars Entertainment’s revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2026 being well below the historical 7.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Caesars Entertainment is also expected to grow slower than other industry participants.
