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Leisure Stocks Q1 Earnings Due on Apr 24: WYNN, MCRI, SIX
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The Q1 reporting cycle is underway with 87 S&P 500 members having released their quarterly numbers (as of Apr 20). Per the latest Earnings Preview, of the 87 S&P 500 companies that have already reported, 82.8% surpassed earnings estimates, 67.8% beat revenue estimates and 62.1% outpaced on both counts. Further, total earnings of these companies increased 25% from the same period last year on 10.7% higher revenues.
The report projects an 18.3% year-over-year rise in earnings for the S&P 500 companies, with total revenues likely to increase 7.7%. This compares favorably with year-over-year increase of 13.4% for earnings in the fourth quarter but unfavorably with 8.6% year-over-year revenue growth in the last reported quarter.
Consumer Discretionary Sector Poised for Growth
Like some other sectors, the widely diversified Consumer Discretionary sector is likely to put up a stellar show in Q1 earnings.
Currently, the domestic economy is favorable for the consumer discretionary sector. The overall economy shows increased consumer demand for goods and services. According to the Fed’s latest forecast, the economy will grow at a reasonable rate of 2.7% in 2018. Unemployment is predicted at 3.8% for 2018 versus the current prediction of 4.1%. Moreover, high real disposable income and low inflation are resulting in improved purchasing behavior. The fourth quarter of 2017 saw the highest consumer spending in three years.
Total earnings for the sector are expected to increase 7.2% in the first quarter, up from 0.8% in the last reported quarter. Revenues are projected to grow 6.8%, higher than 4.6% growth recorded in the preceding quarter. However, even though margin growth is not predicted for the sector in the first quarter, it compares favorably with 0.4% decline in margins in the fourth quarter of 2017.
Gaming Industry on Growth Trajectory
The Gaming Industry, under Consumer Discretionary, has performed well in the past year. The industry has gained 23.8%, outpacing the S&P 500’s rally of 12.8%. Further, we expect the industry to have grown in the first quarter on increasing demand for gaming services and rapid expansion of these service providers.
Casino giant Wynn Resorts, Limited (WYNN - Free Report) is scheduled to report first-quarter 2018 results on Apr 24, after market close. The company’s increasing focus on the non-gaming segment to drive revenues is expected to reflect in the to-be-reported quarter’s top line. Also, expansion in the domestic market and improved tourism conditions are expected to have benefited the quarter’s revenues. Higher margin contribution from a diversified business segment is expected to have favorably impacted the to-be-reported quarter’s earnings. (Read more: Non-Gaming Business to Aid Wynn Resorts' Q1 Earnings)
Also, the company’s shares have rallied 66.6% in the past year, outperforming the industry and the S&P 500.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.96, reflecting a year-over-year increase of 24.2%. Meanwhile, analysts polled by Zacks expect revenues of $1.70 billion, suggesting 15.5% growth from the year-ago quarter.
Wynn Resorts carries a Zacks Rank #3 (Hold) and an Earnings ESP of +5.45%, a combination that increases the odds of a beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Another major casino operator, Monarch Casino & Resort, Inc. (MCRI - Free Report) is expected to release first-quarter numbers on Apr 24. Over the past year, the company has gained 46.6%, outperforming the industry and the S&P 500.
The consensus estimate pegs first-quarter earnings at 38 cents with projected growth of 40.7%. Revenues are projected to grow 0.1% to $53.45 million.
Monarch Casino has a Zacks Rank #3 and an Earnings ESP of -4.00%, a combination that does not suggest a beat.
A Mixed Bag for Leisure and Recreation Services
Although the Leisure and Recreation Services Industry, within Consumer Discretionary, has rallied 7.6% in the past year, underperforming the S&P 500’s growth, increased consumer spending on leisure stocks is expected to have favored the industry’s results in the first quarter.
As it is, Carnival Corporation (CCL - Free Report) , the most prominent of all cruise stocks within the industry, reported better-than-expected results for first-quarter 2018, with both earnings and revenues surpassing the consensus mark.
Six Flags Entertainment Corporation (SIX - Free Report) , a prominent owner and operator of regional parks, is scheduled to report first-quarter numbers on Apr 24, after market close.
The consensus estimate for revenues for the first quarter is pegged at $119.94 million, reflecting 20.5% growth from the year-ago quarter. However, analysts polled by Zacks expect a loss of 79 cents per share, reflecting a decline of 25.4%.
Shares of the company have lost 1% in the past year, underperforming both the industry and the S&P 500 index.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Leisure Stocks Q1 Earnings Due on Apr 24: WYNN, MCRI, SIX
The Q1 reporting cycle is underway with 87 S&P 500 members having released their quarterly numbers (as of Apr 20). Per the latest Earnings Preview, of the 87 S&P 500 companies that have already reported, 82.8% surpassed earnings estimates, 67.8% beat revenue estimates and 62.1% outpaced on both counts. Further, total earnings of these companies increased 25% from the same period last year on 10.7% higher revenues.
The report projects an 18.3% year-over-year rise in earnings for the S&P 500 companies, with total revenues likely to increase 7.7%. This compares favorably with year-over-year increase of 13.4% for earnings in the fourth quarter but unfavorably with 8.6% year-over-year revenue growth in the last reported quarter.
Consumer Discretionary Sector Poised for Growth
Like some other sectors, the widely diversified Consumer Discretionary sector is likely to put up a stellar show in Q1 earnings.
Currently, the domestic economy is favorable for the consumer discretionary sector. The overall economy shows increased consumer demand for goods and services. According to the Fed’s latest forecast, the economy will grow at a reasonable rate of 2.7% in 2018. Unemployment is predicted at 3.8% for 2018 versus the current prediction of 4.1%. Moreover, high real disposable income and low inflation are resulting in improved purchasing behavior. The fourth quarter of 2017 saw the highest consumer spending in three years.
Total earnings for the sector are expected to increase 7.2% in the first quarter, up from 0.8% in the last reported quarter. Revenues are projected to grow 6.8%, higher than 4.6% growth recorded in the preceding quarter. However, even though margin growth is not predicted for the sector in the first quarter, it compares favorably with 0.4% decline in margins in the fourth quarter of 2017.
Gaming Industry on Growth Trajectory
The Gaming Industry, under Consumer Discretionary, has performed well in the past year. The industry has gained 23.8%, outpacing the S&P 500’s rally of 12.8%. Further, we expect the industry to have grown in the first quarter on increasing demand for gaming services and rapid expansion of these service providers.
Casino giant Wynn Resorts, Limited (WYNN - Free Report) is scheduled to report first-quarter 2018 results on Apr 24, after market close. The company’s increasing focus on the non-gaming segment to drive revenues is expected to reflect in the to-be-reported quarter’s top line. Also, expansion in the domestic market and improved tourism conditions are expected to have benefited the quarter’s revenues. Higher margin contribution from a diversified business segment is expected to have favorably impacted the to-be-reported quarter’s earnings. (Read more: Non-Gaming Business to Aid Wynn Resorts' Q1 Earnings)
Also, the company’s shares have rallied 66.6% in the past year, outperforming the industry and the S&P 500.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.96, reflecting a year-over-year increase of 24.2%. Meanwhile, analysts polled by Zacks expect revenues of $1.70 billion, suggesting 15.5% growth from the year-ago quarter.
Wynn Resorts carries a Zacks Rank #3 (Hold) and an Earnings ESP of +5.45%, a combination that increases the odds of a beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Another major casino operator, Monarch Casino & Resort, Inc. (MCRI - Free Report) is expected to release first-quarter numbers on Apr 24. Over the past year, the company has gained 46.6%, outperforming the industry and the S&P 500.
The consensus estimate pegs first-quarter earnings at 38 cents with projected growth of 40.7%. Revenues are projected to grow 0.1% to $53.45 million.
Monarch Casino has a Zacks Rank #3 and an Earnings ESP of -4.00%, a combination that does not suggest a beat.
A Mixed Bag for Leisure and Recreation Services
Although the Leisure and Recreation Services Industry, within Consumer Discretionary, has rallied 7.6% in the past year, underperforming the S&P 500’s growth, increased consumer spending on leisure stocks is expected to have favored the industry’s results in the first quarter.
As it is, Carnival Corporation (CCL - Free Report) , the most prominent of all cruise stocks within the industry, reported better-than-expected results for first-quarter 2018, with both earnings and revenues surpassing the consensus mark.
Six Flags Entertainment Corporation (SIX - Free Report) , a prominent owner and operator of regional parks, is scheduled to report first-quarter numbers on Apr 24, after market close.
The consensus estimate for revenues for the first quarter is pegged at $119.94 million, reflecting 20.5% growth from the year-ago quarter. However, analysts polled by Zacks expect a loss of 79 cents per share, reflecting a decline of 25.4%.
Shares of the company have lost 1% in the past year, underperforming both the industry and the S&P 500 index.
Six Flags has a Zacks Rank #3 and an Earnings ESP of -2.97%, a combination that does not suggest a beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>