We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Though Hollywood has produced some solid films as of late, the overall picture for the movie industry isn’t as bright as it used to be. This is especially true if we look to some of the major theater operators, such as Regal Entertainment Group ((RGC - Free Report) ).
Regal recently reported earnings, and it once again missed estimates. In fact, this is actually the second straight double digit percentage miss on the bottom line for RGC, while it missed on the top line this quarter too.
Earnings are also down in year-over-year terms, so better days have clearly been in the industry before. But, with some nice box office performances in recent days, will it be enough to turn things around for RGC and the rest of the space? Let’s take a look at some of the recent estimates for a guide.
RGC Estimates
Unfortunately for investors, RGC estimates have been moving lower in recent days, including several analyst cuts in the past week alone. And for the full year period, we haven’t seen a single estimate increase in the past sixty days, nor have we for the following year either.
But it isn’t like analysts are just taking a penny or two off of their estimates, as the consensus has dramatically declined in recent weeks. The current quarter consensus has crumbled by 19% in the past two months, while we see a double-digit percentage decline to the full year estimate too.
Regal Entertainment Group Price, Consensus and EPS Surprise
It is also worth noting that the industry has a rank in the bottom third, so it isn’t as though these are problems that are exclusive to Regal. If anything, a broadly weak box office environment—and particularly compared to last year— as well as a sluggish leisure space in general, are hampering investor demand in this space, especially with the bevy of other quality entertainment options out there (such as the boom in quality television programing lately).
For these reasons, it shouldn’t be surprising to note that we believe more pain is ahead for RGC, and that investors may want to wait before jumping in here. The stock currently has a Zacks Rank #5 (Strong Sell) so there are plenty of better stock choices out there for investors.
Other Picks
If you want a different selection in the leisure world, a look to the cruise market could be a good idea. Two companies in this area both have a Zacks Rank #2 (Buy) rating, and may be better choices in the near term.
In particular, both Norwegian Cruise Line ((NCLH - Free Report) ) and Royal Caribbean ((RCL - Free Report) ) stand out in this environment, as each member of the duo has a better track record for beating earnings, while they both have better estimate trends too. So, if you are looking for a different play in the leisure market in the near-term, definitely give one of the cruise players a closer look over RGC, at least until the box office space turns around.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bear of the Day: Regal Entertainment Group (RGC)
Though Hollywood has produced some solid films as of late, the overall picture for the movie industry isn’t as bright as it used to be. This is especially true if we look to some of the major theater operators, such as Regal Entertainment Group ((RGC - Free Report) ).
Regal recently reported earnings, and it once again missed estimates. In fact, this is actually the second straight double digit percentage miss on the bottom line for RGC, while it missed on the top line this quarter too.
Earnings are also down in year-over-year terms, so better days have clearly been in the industry before. But, with some nice box office performances in recent days, will it be enough to turn things around for RGC and the rest of the space? Let’s take a look at some of the recent estimates for a guide.
RGC Estimates
Unfortunately for investors, RGC estimates have been moving lower in recent days, including several analyst cuts in the past week alone. And for the full year period, we haven’t seen a single estimate increase in the past sixty days, nor have we for the following year either.
But it isn’t like analysts are just taking a penny or two off of their estimates, as the consensus has dramatically declined in recent weeks. The current quarter consensus has crumbled by 19% in the past two months, while we see a double-digit percentage decline to the full year estimate too.
Regal Entertainment Group Price, Consensus and EPS Surprise
Regal Entertainment Group Price, Consensus and EPS Surprise | Regal Entertainment Group Quote
It is also worth noting that the industry has a rank in the bottom third, so it isn’t as though these are problems that are exclusive to Regal. If anything, a broadly weak box office environment—and particularly compared to last year— as well as a sluggish leisure space in general, are hampering investor demand in this space, especially with the bevy of other quality entertainment options out there (such as the boom in quality television programing lately).
For these reasons, it shouldn’t be surprising to note that we believe more pain is ahead for RGC, and that investors may want to wait before jumping in here. The stock currently has a Zacks Rank #5 (Strong Sell) so there are plenty of better stock choices out there for investors.
Other Picks
If you want a different selection in the leisure world, a look to the cruise market could be a good idea. Two companies in this area both have a Zacks Rank #2 (Buy) rating, and may be better choices in the near term.
In particular, both Norwegian Cruise Line ((NCLH - Free Report) ) and Royal Caribbean ((RCL - Free Report) ) stand out in this environment, as each member of the duo has a better track record for beating earnings, while they both have better estimate trends too. So, if you are looking for a different play in the leisure market in the near-term, definitely give one of the cruise players a closer look over RGC, at least until the box office space turns around.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>