Valued at a market cap of $7.2 billion, Caesars Entertainment, Inc. (CZR) is a diversified gaming and hospitality company that owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals, e-tables, and hotel rooms, as well as table games, including poker. The Reno, Nevada-based company also operates and conducts retail and online sports wagering. It is expected to announce its fiscal Q4 earnings results after the market closes on Thursday, Feb. 25. 

Ahead of this event, analysts expect the gambling company to report a loss of $0.04 per share, which reflects an 88.2% improvement from a loss of $0.34 per share in the year-ago quarter. On the other hand, the company’s earnings surprise history is quite disappointing. It was unable to meet Wall Street's bottom-line estimates in any of the last four quarters. The company registered a loss of $0.04 per share in the previous quarter, which came in much worse than Wall Street’s forecasted profit of $0.21 per share. 

Over the longer term, analysts expect CZR to report a loss of $0.58 in fiscal 2024, down a staggering 163% from a profit of $0.92 in fiscal 2023. However, in fiscal 2025, the company’s bottom line is expected to rebound and hit a profit of $1.30, growing by a stunning 324.1% year over year. 

Shares of CZR have declined 23% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 26.5% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.1% return over the same time frame.

CZR’s shares plunged 8.2% following its weaker-than-expected Q3 earnings release on Oct. 29. The company posted a loss of $0.04 per share, compared to earnings of $0.34 per share in the year-ago quarter. The bottom-line figure significantly fell short of the Wall Street estimates. Moreover, its revenues declined 4% year-over-year to $2.9 billion and missed the forecasted figure by 1.4%. 

Soft contributions from the Regional segment fueled by the adverse impact of new competition, construction disruption, and difficult year-over-year comparisons primarily led to its disappointing performance. Lower revenue contributions from the Managed and Branded and Las Vegas segments further acted as a headwind. 

Yet, Wall Street analysts remain moderately optimistic about Caesars Entertainment’s stock, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, 11 recommend a "Strong Buy," three suggest “Hold,” and only one indicates a “Strong Sell.” However, this configuration is slightly less bullish than three months ago, with 12 analysts suggesting a “Strong Buy.” 

The mean price target for CZR is $50.43, which indicates a solid 48.1% potential upside from the current levels.