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Leisure Stocks Q3 Earnings Roster for Nov 2: ZNGA, BEL, LQ

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The Consumer Discretionary sector has thus far outpaced most of the other sectors in the current earnings season.

Per our latest Earnings Preview report, 40% of the Consumer Discretionary companies in the S&P 500 index have reported their results, as of Oct 28. Growth rate for earnings and revenues is 8.2% and 8.4%, respectively. Moreover, the beat ratios for this sector have been remarkable (64.3% for earnings and 50% for revenues).

Turning our focus to the leisure companies, we note that the performance of the stocks has been mixed so far this earnings season.

Among the leisure stocks that have reported, Polaris Industries Inc. (PII - Free Report) and The Marcus Corporation (MC - Free Report) have delivered better-than-expected performance in the third quarter. Pool Corp. (POOL - Free Report) also beat earnings expectations but marginally missed the revenue estimates.

However, ClubCorp Holdings, Inc. missed both revenue and earnings estimates, while Brunswick Corporation (BC - Free Report) reported in-line earnings and missed the revenue estimates.

A few leisure companies are set to report their third-quarter 2016 results on Nov 2. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:

Zynga, Inc. posted in-line earnings last quarter. Before that, the company surpassed earnings estimates in the three trailing quarters, bringing the average surprise in last four quarters to a positive 35%.

Notably, our proven model does not conclusively show that an earnings beat is likely for Zynga in the quarter. This is because a company needs to have the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise, which is not the case here. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

ZYNGA INC Price and EPS Surprise

For the quarter, the company has an Earnings ESP of -100% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, the Zacks Consensus Estimate for the quarter is pegged at a loss of 2 cents.

Belmond Ltd. recorded a negative earnings surprise of 50% in the last quarter. However, before that, the company surpassed/met the earnings estimates in the trailing three quarters, bringing the average surprise to a positive 106.25%.

We note that Belmond is unlikely to post a beat in the quarter as it has a Zacks Rank #3 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 21 cents.

BELMOND LTD Price and EPS Surprise

La Quinta Holdings, Inc. recorded a positive earnings surprise of 5% in the last quarter. In fact, the company’s results outpaced/met estimates in three of the trailing four quarters, with an average surprise of positive 3.13%.

We note that La Quinta is unlikely to post a beat in the quarter as it has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 19 cents.

LA QUINTA HLDGS Price and EPS Surprise

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

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Pool Corporation (POOL) - free report >>

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Polaris Inc. (PII) - free report >>

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