Caesars Entertainment Corporation (CZR) Turns Profit on Tax Benefit

Caesars Entertainment Corporation (NASDAQ:CZR) had an impressive quarter as the company turned a profit thanks to a one-time tax benefit.

Caesars Entertainment Corporation (CZR)The casino operator would’ve posted a loss once again it wasn’t for a $2.03 billion tax benefit linked to the recent changes in the U.X. tax code, plus the company’s ability to come back from the bankruptcy of one of its units. In the year-ago quarter, the company posted a loss of $463 million, or $3.15 per share.

For its fourth quarter of fiscal 2017, Caesars Entertainment reported earnings of $2 billion, or $2.48 per share. Analysts were calling for earnings of 8 cents per share, according to data compiled by FactSet.

Revenue amounted to $1.90 billion as the company kicks off its fiscal 2018 on a strong point, doubling its year-ago sales of $949 million. Analysts were projecting revenue of $1.99 billion, according to FactSet.

Caesar Entertainment’s Las Vegas revenue per available room (RevPAR) was flat year-over-year at $124, while its Las Vegas Strip market RevPAR fell 3% year-over-year. The casino operator’s marketing expense fell 4% year-over-year due to a 52 basis-point improvement in its marketing efficiency.

“Same-store gaming revenues increased company-wide for the full year despite unfavorable hold of approximately $80 million,” said Mark Frissora, President and CEO.

For its fiscal 2017, the casino chain posted a net loss of $375 million, while net revenues tallied up to $4.85 billion. Caesar Entertainment’s same-store net revenues were flat year-over-year at $8.12 billion.

CZR stock surged 3.6% after the bell Wednesday.

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