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Isle of Capri Casinos (ISLE) Q3 Earnings: What to Expect?

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Isle of Capri Casinos, Inc. is slated to release its third-quarter fiscal 2017 results on Feb 23, before the opening bell.

Last quarter, Isle of Capri Casinos posted a 35.00% negative earnings surprise. Moreover, the company’s earnings have missed the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 13.82%.

Isle of Capri Casinos, Inc. Price and EPS Surprise

Let’s see how things are shaping up for this announcement.

Factors at Play

Isle of Capri Casinos’ persistent efforts to improve operational performance has been driving cost savings at both the property and corporate levels. We expect the trend to have continued into the to-be-reported quarter, thereby driving EBITDA (Earnings before Interest, tax, Depreciation, Amortization) growth.

Further, the company’s properties continue to benefit from efficient marketing strategies and roll out of varied new initiatives. Consistent capital investments to improve the quality of the company’s asset portfolio are also expected to have driven the quarter’s results. Additionally, we expect the recently-opened Bettendorf land-based facility to add to revenues.

However, challenging weather conditions and increased competition might hamper the company’s top-line growth in the quarter. Moving ahead, increased costs related to initiatives could also weigh on margins.

Earnings Whispers

Our proven model does not conclusively show that Isle of Capri Casinos is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.

Zacks ESP: Earnings ESP for Isle of Capri Casinos is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 18 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Isle of Capri Casinos currently carries a Zacks Rank #3, which when combined with an ESP of 0.00% makes surprise prediction difficult.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
    
Stocks to Consider

Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:

Extended Stay America, Inc. has an Earnings ESP of +21.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Imax Corporation (IMAX - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3.

Red Rock Resorts Inc. (RRR - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #3.

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