The third-quarter reporting cycle is picking up with 116 of the S&P 500 members having already reported their quarterly numbers (as of Oct 21).
Going by the results so far, the Q3 earnings season is on track to be the first quarter to move into the positive territory after five back-to-back quarters of decline for the S&P 500 Index. In fact, the latest Earnings Preview projects a 0.1% year-over-year increase in third-quarter earnings with revenues likely to clock 1.5% growth.
Hotel Stocks in Focus
With all eyes on the Q3 earnings season, let’s take a look at how the hotel stocks are expected to fare.
The U.S. hotel industry slowed down in the first half of 2016 from the 2015 levels. Apart from a decline in occupancy levels in the first half, negative currency translation as well as pockets of geopolitical instability and economic slowdown raised concerns.
We note that the aforementioned headwinds still continue to haunt hoteliers. Yet, an increase in business and leisure travel on the back of an improving economy and positive employment numbers along with higher transaction volumes are expected to somewhat boost Q3 results.
Three hotel companies are set to report their third-quarter 2016 numbers on Oct 26. 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:
Hilton Worldwide Holdings Inc. (HLT - Free Report) posted a negative earnings surprise of 3.85% last quarter. However, the trailing four-quarter average earnings surprise stands at a positive 0.60%.
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.
The Zacks Consensus Estimate for the quarter’s bottom line is pegged at $1.87. Wyndham’s strong developmental pipeline, consistent expansion plans, significant international exposure and robust marketing efforts should drive the quarter’s earnings. However, negative currency translation and uncertainty in international markets could dampen its revenues (read more: Is a Surprise in Store for Wyndham in Q3 Earnings?).
La Quinta Holdings Inc. registered a 5.00% positive earnings surprise in the previous quarter. Moreover, the company outpaced/met the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 3.13%.
The company has an Earnings ESP of 0.00%, which when combined with a Zacks Rank #4, makes surprise prediction difficult. Meanwhile, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 19 cents.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
Confidential from Zacks
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The third-quarter reporting cycle is picking up with 116 of the S&P 500 members having already reported their quarterly numbers (as of Oct 21).
Going by the results so far, the Q3 earnings season is on track to be the first quarter to move into the positive territory after five back-to-back quarters of decline for the S&P 500 Index. In fact, the latest Earnings Preview projects a 0.1% year-over-year increase in third-quarter earnings with revenues likely to clock 1.5% growth.
Hotel Stocks in Focus
With all eyes on the Q3 earnings season, let’s take a look at how the hotel stocks are expected to fare.
The U.S. hotel industry slowed down in the first half of 2016 from the 2015 levels. Apart from a decline in occupancy levels in the first half, negative currency translation as well as pockets of geopolitical instability and economic slowdown raised concerns.
We note that the aforementioned headwinds still continue to haunt hoteliers. Yet, an increase in business and leisure travel on the back of an improving economy and positive employment numbers along with higher transaction volumes are expected to somewhat boost Q3 results.
Three hotel companies are set to report their third-quarter 2016 numbers on Oct 26. 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:
Hilton Worldwide Holdings Inc. (HLT - Free Report) posted a negative earnings surprise of 3.85% last quarter. However, the trailing four-quarter average earnings surprise stands at a positive 0.60%.
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.
The Zacks Consensus Estimate for the quarter’s bottom line is pegged at $1.87. Wyndham’s strong developmental pipeline, consistent expansion plans, significant international exposure and robust marketing efforts should drive the quarter’s earnings. However, negative currency translation and uncertainty in international markets could dampen its revenues (read more: Is a Surprise in Store for Wyndham in Q3 Earnings?).
La Quinta Holdings Inc. registered a 5.00% positive earnings surprise in the previous quarter. Moreover, the company outpaced/met the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 3.13%.
The company has an Earnings ESP of 0.00%, which when combined with a Zacks Rank #4, makes surprise prediction difficult. Meanwhile, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 19 cents.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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