Caesars Entertainment Stock Tumbles
Caesars Entertainment's stock fell sharply Wednesday after the company said it expects weak results in the current quarter because of fewer scheduled events and lower room rates in Las Vegas.
Caesars reported second-quarter net income of $29 million, after reporting a loss in the same period a year earlier.
While the results topped Wall Street expectations, executives said on a conference call that they are seeing lower demand in Las Vegas for July and August.
That, in turn, triggered a selling spree that forced Caesars' stock to be halted three times during the call, even as executives attempted to reassure industry analysts the slowdown is only temporary.
Shares in Caesars Entertainment Corp. at one point Wednesday fell more than 24 percent in trading. They ended the day down almost 15 percent at $9.63. Other casino operators also saw their stocks tumble.
The company expects third-quarter revenue per available room in Las Vegas to grow up to 2 percent and kept its full-year guidance between 4 and 6 percent.