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The first-quarter earnings seems to be in full flow with a deluge of companies reporting their financial figures each day. Let’s take a look at how the leisure companies from the widely diversified Consumer Discretionary sector have fared so far.
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.
While overall earnings for the sector in first-quarter 2017 are expected to be up 8.1% year over year, revenues are likely to increase11.3%.
However, the performance of the leisure stocks within the sector has been mixed so far this earnings season.
Among the notable companies in the leisure space that have already reported results, Brunswick Corporation (BC - Free Report) delivered an impressive performance with both earnings and revenues topping the Zacks Consensus Estimates. Meanwhile, Royal Caribbean Cruises Ltd. (RCL - Free Report) posted mixed results with earnings beating the consensus mark, while revenues failed to surpass the same.
Six leisure stocks from the sector are set to report their quarterly results on May 4. Will these companies manage to put up a decent performance? Let’s see what might be in store for them this quarter:
Leading global hospitality company, Hyatt Hotels Corporation (H - Free Report) had posted a positive earnings surprise of 20.83% in the previous quarter. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 33.00%.
Notably, our proven model does not conclusively show earnings beat for Hyatt Hotels in the first 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.
In this context, for the first quarter of 2017, Hyatt Hotels has an Earnings ESP of -8.33% and a Zacks Rank #3, thereby making it difficult to predict a beat. 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’s bottom line is pegged at 24 cents. The company’s improved transient demand and greater pricing power are expected to somewhat drive Revenue per Available Room (RevPAR) in the first quarter. However, pressure on margins due to lower nominal growth in RevPAR, geopolitical uncertainties in key operating regions, and negative currency translations could mar the quarter’s performance (read more: What Should You Expect from Hyatt Hotels in Q1 Earnings?).
Marriott Vacations Worldwide Corp. (VAC - Free Report) had posted a positive earnings surprise of 3.98% in the previous quarter. However, the company lagged earnings estimates in two of the past four quarters, leading to an average miss of 5.60%.
Marriot Vacations Worldwide Corporation Price and EPS Surprise
For first-quarter 2017, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #2 (Buy). Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.18.
Marriott Vacations is poised to benefit from positive timeshare industry trends. Also, the company’s offering of tours to diverse locations and programs with greater outreach is likely to aid in maintaining a steady flow of clients in the quarter as well. Nonetheless, increased marketing expenses might pressurize the first quarter margins (read more: What to Expect from Marriott Vacations in Q1 Earnings?).
Live Nation Entertainment, Inc.’s (LYV - Free Report) loss was in line with the Zacks Consensus Estimate in the last quarter. But prior to that, the company had posted positive earnings surprise in each of the three trailing quarters, bringing the average positive surprise in the last four quarters to 23.56%.
Live Nation Entertainment, Inc. Price and EPS Surprise
Notably, Live Nation is likely to post a beat in the first quarter of 2017 due to the combination of its Zacks Rank #3 and Earnings ESP of +6.06%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 33 cents.
Various digital initiatives undertaken by the company are likely to improve the ticket booking experience and drive the first-quarter revenues. We also expect the revenue growth momentum in the Ticketing segment to continue in the to-be-reported quarter. However, unfavorable foreign currency translations and sluggishness in the overall macro environment might dent revenues (read more: Is a Beat in Store for Live Nation in Q1 Earnings?).
ILG, Inc. had registered a positive earnings surprise of 37.14% in the previous quarter. In fact, the company’s earnings surpassed/met the Zacks Consensus Estimate in the last four quarters, with an average beat of 25.82%.
For the first quarter of 2017, the company has an Earnings ESP of -3.23%, which makes surprise prediction difficult even though the company has a Zacks Rank #3. Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 31 cents.
The Madison Square Garden Company , which is involved in the sports, entertainment and media industries, recorded a positive earnings surprise of 14.35% in the last reported quarter. However, the trailing four-quarter average negative surprise is 31.17%.
The Madison Square Garden Company Price and EPS Surprise
We expect the company to surpass expectations in third-quarter fiscal 2017 due to the combination of its Zacks Rank #2 and Earnings ESP of +36.36%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 55 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Red Rock Resorts, Inc. (RRR - Free Report) posted a positive earnings surprise of 12.12% in the last quarter. However, the trailing four-quarter average negative surprise is 17.94%.
The company is unlikely to post a beat in first-quarter 2017 due to the combination of its Zacks Rank #5 (Strong Sell) and Earnings ESP of +14.29%. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 35 cents.
Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Leisure Stocks May 4 Earnings Roster: H, VAC, LYV & Others
The first-quarter earnings seems to be in full flow with a deluge of companies reporting their financial figures each day. Let’s take a look at how the leisure companies from the widely diversified Consumer Discretionary sector have fared so far.
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.
While overall earnings for the sector in first-quarter 2017 are expected to be up 8.1% year over year, revenues are likely to increase11.3%.
However, the performance of the leisure stocks within the sector has been mixed so far this earnings season.
Among the notable companies in the leisure space that have already reported results, Brunswick Corporation (BC - Free Report) delivered an impressive performance with both earnings and revenues topping the Zacks Consensus Estimates. Meanwhile, Royal Caribbean Cruises Ltd. (RCL - Free Report) posted mixed results with earnings beating the consensus mark, while revenues failed to surpass the same.
Six leisure stocks from the sector are set to report their quarterly results on May 4. Will these companies manage to put up a decent performance? Let’s see what might be in store for them this quarter:
Leading global hospitality company, Hyatt Hotels Corporation (H - Free Report) had posted a positive earnings surprise of 20.83% in the previous quarter. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 33.00%.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation Price and EPS Surprise | Hyatt Hotels Corporation Quote
Notably, our proven model does not conclusively show earnings beat for Hyatt Hotels in the first 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.
In this context, for the first quarter of 2017, Hyatt Hotels has an Earnings ESP of -8.33% and a Zacks Rank #3, thereby making it difficult to predict a beat. 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’s bottom line is pegged at 24 cents. The company’s improved transient demand and greater pricing power are expected to somewhat drive Revenue per Available Room (RevPAR) in the first quarter. However, pressure on margins due to lower nominal growth in RevPAR, geopolitical uncertainties in key operating regions, and negative currency translations could mar the quarter’s performance (read more: What Should You Expect from Hyatt Hotels in Q1 Earnings?).
Marriott Vacations Worldwide Corp. (VAC - Free Report) had posted a positive earnings surprise of 3.98% in the previous quarter. However, the company lagged earnings estimates in two of the past four quarters, leading to an average miss of 5.60%.
Marriot Vacations Worldwide Corporation Price and EPS Surprise
Marriot Vacations Worldwide Corporation Price and EPS Surprise | Marriot Vacations Worldwide Corporation Quote
For first-quarter 2017, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #2 (Buy). Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.18.
Marriott Vacations is poised to benefit from positive timeshare industry trends. Also, the company’s offering of tours to diverse locations and programs with greater outreach is likely to aid in maintaining a steady flow of clients in the quarter as well. Nonetheless, increased marketing expenses might pressurize the first quarter margins (read more: What to Expect from Marriott Vacations in Q1 Earnings?).
Live Nation Entertainment, Inc.’s (LYV - Free Report) loss was in line with the Zacks Consensus Estimate in the last quarter. But prior to that, the company had posted positive earnings surprise in each of the three trailing quarters, bringing the average positive surprise in the last four quarters to 23.56%.
Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. Price and EPS Surprise | Live Nation Entertainment, Inc. Quote
Notably, Live Nation is likely to post a beat in the first quarter of 2017 due to the combination of its Zacks Rank #3 and Earnings ESP of +6.06%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 33 cents.
Various digital initiatives undertaken by the company are likely to improve the ticket booking experience and drive the first-quarter revenues. We also expect the revenue growth momentum in the Ticketing segment to continue in the to-be-reported quarter. However, unfavorable foreign currency translations and sluggishness in the overall macro environment might dent revenues (read more: Is a Beat in Store for Live Nation in Q1 Earnings?).
ILG, Inc. had registered a positive earnings surprise of 37.14% in the previous quarter. In fact, the company’s earnings surpassed/met the Zacks Consensus Estimate in the last four quarters, with an average beat of 25.82%.
ILG Inc. Price and EPS Surprise
ILG Inc. Price and EPS Surprise | ILG Inc. Quote
For the first quarter of 2017, the company has an Earnings ESP of -3.23%, which makes surprise prediction difficult even though the company has a Zacks Rank #3. Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 31 cents.
The Madison Square Garden Company , which is involved in the sports, entertainment and media industries, recorded a positive earnings surprise of 14.35% in the last reported quarter. However, the trailing four-quarter average negative surprise is 31.17%.
The Madison Square Garden Company Price and EPS Surprise
The Madison Square Garden Company Price and EPS Surprise | The Madison Square Garden Company Quote
We expect the company to surpass expectations in third-quarter fiscal 2017 due to the combination of its Zacks Rank #2 and Earnings ESP of +36.36%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 55 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Red Rock Resorts, Inc. (RRR - Free Report) posted a positive earnings surprise of 12.12% in the last quarter. However, the trailing four-quarter average negative surprise is 17.94%.
Red Rock Resorts, Inc. Price and EPS Surprise
Red Rock Resorts, Inc. Price and EPS Surprise | Red Rock Resorts, Inc. Quote
The company is unlikely to post a beat in first-quarter 2017 due to the combination of its Zacks Rank #5 (Strong Sell) and Earnings ESP of +14.29%. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 35 cents.
Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>