Casino carnage as Caesars tumbles as much as 24% on poor Las Vegas outlook

  • Caesars Entertainment stock falls sharply during the company's second-quarter earnings conference call.
  • Weak demand in July and August caused Caesars "to be cautious about how we provide guidance," CFO Eric Hession tells investors during the call.

Caesars Entertainment stock fell sharply during the second-quarter earnings conference call on Wednesday as the gaming company revealed a cautious forecast for the upcoming quarter.

CFO Eric Hession told investors on the call that the demand in July and August "saw some softening," causing Caesars "to be cautious about how we provide guidance." When pushed for clarification, Hession said it was "correct" to say Caesars was looking at upcoming results less optimistically than it did the last three months.

At one point, Caesars shares fell over 24 percent in trading Wednesday, before recouping about half the losses, ending the day down 14.8 percent at $9.63 per share. Trading in the stock was halted three times due to volatility.

Casino stocks all hit session lows during Caesars' tumble, with shares of Las Vegas Sands, Wynn Resorts and MGM Resorts all sliding more than 3 percent.