Caesars Entertainment (NASDAQ:CZR) stock fell about 2% in the extended trading session. The fall comes after the company reported fourth-quarter results that missed analysts’ expectations.
CZR is a leading casino entertainment company known for its diverse portfolio of gaming, hospitality, and entertainment offerings.
Q4 Earnings Snapshot
The company reported a Q4 loss per share of $0.34, down from a loss of $0.70 per share in the year-ago quarter, but missed the consensus estimate of a loss of $0.04 per share. Meanwhile, net revenue remained flat year-over-year at $2.83 billion and came below the Street’s estimate of $2.85 billion.
Segment-wise, revenue in Caesars’ Las Vegas business fell 5.5% year-over-year due to an increase in expenses related to hotel operations and food and beverages. On the contrary, revenue from the Caesars Digital segment increased by 28.3%. Moreover, revenues from the Regional segment remained nearly flat from the year-ago quarter.
Other Major News
In addition to its earnings report, CZR announced that it has agreed to acquire WynnBET’s iGaming business situated in Michigan. The company also announced the extension of the iGaming market access agreement with the Sault Ste. Marie Tribe.
This acquisition enables Caesars to strengthen its position in one of the largest iCasino markets in the United States.
Is Caesar a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on Caesars Entertainment stock. Following a nearly 19% slide in the company’s share price over the past six months, the average CZR price target of $61.50 implies a 47.66% potential upside in the stock.
