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Leisure Stock Q1 Earnings Due on May 3: CNK, FUN, LQ, HGV

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We are in the thick of the first-quarter earnings and the widely diversified Consumer Discretionary sector is grabbing much of the spotlight.

Per the latest Earnings Preview, 42.9% of the Consumer Discretionary companies in the S&P 500 index have already reported their results as of Apr 28. The growth rate for earnings and revenues is 18.1% and 6.8%, respectively. In fact, the beat ratio of 80.0% and 53.3% for earnings and revenues, respectively, is also noteworthy.

In fact, overall earnings for the sector in first-quarter 2017 are expected to be up 8.1% year over year and revenues are also likely to surge 11.3%.

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, Brunswick Corporation (BC - Free Report) , MGM Resorts International (MGM - Free Report) and Penn National Gaming Inc. (PENN - Free Report) reported better-than-expected results.

Meanwhile, Royal Caribbean Cruises Ltd. (RCL - Free Report) and Regal Entertainment Group posted mixed results. Though Royal Caribbean’s earnings topped the Zacks Consensus Estimate, revenues missed the mark. On the other hand, Regal Entertainment failed to beat bottom-line expectations, while its top line surpassed the same.

However, Churchill Downs Inc. (CHDN - Free Report) lagged on both fronts.

Four leisure stocks from the sector are set to report their first-quarter 2017 results on May 3. 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:

Cinemark Holdings, Inc. (CNK - Free Report) had posted a 48.84% positive earnings surprise in the previous quarter. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 14.90%.

Cinemark Holdings Inc Price and EPS Surprise

 

Cinemark Holdings Inc Price and EPS Surprise | Cinemark Holdings Inc Quote

Notably, our proven model does not conclusively show earnings beat for Cinemark Holdings this quarter. This is because, according to our quantitative model, a company needs 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.

For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for the quarter is pegged at 61 cents. We believe Cinemark’s renovation of theatres and attractive promotional offers should lead to substantial subscriber growth in the to-be-reported quarter. However, the recent trend of movie watchers opting for streaming services is making film studios seek better terms in box-office revenues with large-screen theater companies, which might hamper profitability (read more: Cinemark Holdings Q1 Earnings: What's in the Cards?).

Cedar Fair, L.P. (FUN - Free Report) recorded negative earnings surprise of 300% in the last quarter. Also, the trailing four-quarter average earnings surprise is a negative 73.71%.

Cedar Fair, L.P. Price and EPS Surprise

 

Cedar Fair, L.P. Price and EPS Surprise | Cedar Fair, L.P. Quote

Moreover, this Zacks Rank #3 company has an Earnings ESP of -2.75%, which makes surprise prediction difficult in this quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for the quarter’s is pegged at a loss of $1.09.

La Quinta Holdings Inc. registered a 50.00% negative earnings surprise in the previous quarter. Furthermore, the trailing four-quarter average earnings surprise is a negative 8.13%.

La Quinta Holdings Inc. Price and EPS Surprise

 

La Quinta Holdings Inc. Price and EPS Surprise | La Quinta Holdings Inc. Quote

Notably, La Quinta Holdings is likely to post a beat in the quarter due to the combination of its Zacks Rank #3 and Earnings ESP of +50.00%. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 6 cents.

Also, Hilton Grand Vacations Inc. (HGV - Free Report) is anticipated to beat expectations in this quarter as the company has an Earnings ESP of +5.26% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 38 cents.

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

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