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Leisure Stocks' Q4 Earnings on Feb 28: AMC, SEAS, CHDN, ILG
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The fourth-quarter earnings season is about to wind up, and the widely diversified Consumer Discretionary sector has grabbed much of the attention.
According to the latest Earnings Preview, 88.6% of the Consumer Discretionary companies in the S&P 500 index have reported their results as of Feb 17. The growth rates for earnings and revenues are 10.6% and 12.9%, respectively. Also, the beat ratios for this sector are noteworthy (77.4% for earnings and 61.3% for revenues).
Leisure Stocks in Focus
Turning our focus on the leisure companies from the Consumer Discretionary sector, we note that their performance has been mixed so far this earnings season.
Among the leisure stocks that have already reported results, ClubCorp Holdings, Inc. posted robust results beating both top- and bottom-line expectations. Meanwhile, Royal Caribbean Cruises Ltd. (RCL - Free Report) and Brunswick Corporation (BC - Free Report) delivered mixed performance in the fourth quarter. Both the companies surpassed earnings expectations, but missed the revenue estimates. However, Callaway Golf Company’s loss was wider than the consensus estimate and its revenues too missed the mark.
Four leisure stocks from the sector are set to report their fourth-quarter and full-year 2016 results on Feb 28. 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:
Leisure and recreation services company, AMC Entertainment Holdings, Inc. (AMC - Free Report) recorded a positive earnings surprise of 10.71% in the last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 7.39%.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
Our proven model does not conclusively show that AMC Entertainment is likely to beat earnings this time. This is because, according to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell), thereby making it difficult to conclusively predict a beat. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 34 cents.
It should be noted 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.
Renovation and refurbishing of multiplexes through enhancements like reclining seats, improved food and beverages, dine-in theaters along with advanced sound and digital equipment should boost the quarterly results. However, being part of the entertainment industry exposes AMC Entertainment to macroeconomic fluctuations, which is likely to weigh on the to-be-reported quarter’s performance (read more: AMC Entertainment Q4 Earnings: Will it Disappoint?).
Now, let’s see what’s in store for theme park and entertainment company SeaWorld Entertainment, Inc. . The company posted a negative earnings surprise of 27.36% in the preceding quarter. Furthermore, the trailing four-quarter average earnings surprise is a negative 9.85%.
SeaWorld Entertainment, Inc. Price and EPS Surprise
We note that SeaWorld Entertainment is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #5 and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 13 cents.
Even promotional offerings have not been able to arrest the decline in the company’s traffic trends. Also, costs related to marketing and reputation campaigns could eat into profits in the fourth quarter. Nevertheless, capital investments in new rides and attractions, extended hours at SeaWorld Parks and more such strategies are likely to offset the negatives to some extent and attract customers, thereby somewhat improving attendance (read more: What to Expect from SeaWorld This Earnings Season?).
Next, Churchill Downs Incorporated (CHDN - Free Report) registered a negative earnings surprise of 41.57% in the last quarter. Moreover, the trailing four-quarter average earnings surprise is a negative 25.49%.
Churchill Downs, Incorporated Price and EPS Surprise
We note that Churchill Downs is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #4 (Sell) and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 62 cents.
Finally, ILG, Inc. registered a 50.00% positive earnings surprise in the previous quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 20.88%.
Notably, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 35 cents.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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Leisure Stocks' Q4 Earnings on Feb 28: AMC, SEAS, CHDN, ILG
The fourth-quarter earnings season is about to wind up, and the widely diversified Consumer Discretionary sector has grabbed much of the attention.
According to the latest Earnings Preview, 88.6% of the Consumer Discretionary companies in the S&P 500 index have reported their results as of Feb 17. The growth rates for earnings and revenues are 10.6% and 12.9%, respectively. Also, the beat ratios for this sector are noteworthy (77.4% for earnings and 61.3% for revenues).
Leisure Stocks in Focus
Turning our focus on the leisure companies from the Consumer Discretionary sector, we note that their performance has been mixed so far this earnings season.
Among the leisure stocks that have already reported results, ClubCorp Holdings, Inc. posted robust results beating both top- and bottom-line expectations. Meanwhile, Royal Caribbean Cruises Ltd. (RCL - Free Report) and Brunswick Corporation (BC - Free Report) delivered mixed performance in the fourth quarter. Both the companies surpassed earnings expectations, but missed the revenue estimates. However, Callaway Golf Company’s loss was wider than the consensus estimate and its revenues too missed the mark.
Four leisure stocks from the sector are set to report their fourth-quarter and full-year 2016 results on Feb 28. 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:
Leisure and recreation services company, AMC Entertainment Holdings, Inc. (AMC - Free Report) recorded a positive earnings surprise of 10.71% in the last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 7.39%.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
AMC Entertainment Holdings, Inc. Price and EPS Surprise | AMC Entertainment Holdings, Inc. Quote
Our proven model does not conclusively show that AMC Entertainment is likely to beat earnings this time. This is because, according to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell), thereby making it difficult to conclusively predict a beat. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 34 cents.
It should be noted 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.
Renovation and refurbishing of multiplexes through enhancements like reclining seats, improved food and beverages, dine-in theaters along with advanced sound and digital equipment should boost the quarterly results. However, being part of the entertainment industry exposes AMC Entertainment to macroeconomic fluctuations, which is likely to weigh on the to-be-reported quarter’s performance (read more: AMC Entertainment Q4 Earnings: Will it Disappoint?).
Now, let’s see what’s in store for theme park and entertainment company SeaWorld Entertainment, Inc. . The company posted a negative earnings surprise of 27.36% in the preceding quarter. Furthermore, the trailing four-quarter average earnings surprise is a negative 9.85%.
SeaWorld Entertainment, Inc. Price and EPS Surprise
SeaWorld Entertainment, Inc. Price and EPS Surprise | SeaWorld Entertainment, Inc. Quote
We note that SeaWorld Entertainment is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #5 and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 13 cents.
Even promotional offerings have not been able to arrest the decline in the company’s traffic trends. Also, costs related to marketing and reputation campaigns could eat into profits in the fourth quarter. Nevertheless, capital investments in new rides and attractions, extended hours at SeaWorld Parks and more such strategies are likely to offset the negatives to some extent and attract customers, thereby somewhat improving attendance (read more: What to Expect from SeaWorld This Earnings Season?).
Next, Churchill Downs Incorporated (CHDN - Free Report) registered a negative earnings surprise of 41.57% in the last quarter. Moreover, the trailing four-quarter average earnings surprise is a negative 25.49%.
Churchill Downs, Incorporated Price and EPS Surprise
Churchill Downs, Incorporated Price and EPS Surprise | Churchill Downs, Incorporated Quote
We note that Churchill Downs is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #4 (Sell) and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 62 cents.
Finally, ILG, Inc. registered a 50.00% positive earnings surprise in the previous quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 20.88%.
ILG Inc. Price and EPS Surprise
ILG Inc. Price and EPS Surprise | ILG Inc. Quote
For the quarter, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has 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’s bottom line is pegged at 35 cents.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>