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Leisure Stock Q1 Earnings Due on Apr 28: MGM, MLCO & More

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The Leisure industry comprises a wide range of recreation providers such as cruise, entertainment and media owners, theme park makers, resort operators and event organizers. Some of the industry participants also have ski and sports businesses. The coronavirus pandemic has negatively impacted the leisure industry on a global scale.  Moreover, dismal traffic is being witnessed due to capacity restrictions and social-distancing protocols.

The industry participants are also suspending share repurchase programs and dividend payouts to improve liquidity. Moreover, supply chain disruptions due the pandemic continue to hurt the industry. This is leading to changed consumer preferences and limiting recreational choices.

Moreover, casinos operators are witnessing dismal visitation due to pandemic. Although, the casinos operators are reporting sequential improvement in visitation, it is still well below pre-pandemic levels. The industry participants are also witnessing cash burn, which is affecting their results.  

However, the golf industry is doing exceptionally well during the pandemic. Golf is gaining from increase in participation of young people who were compelled to refrain from sports like football in adherence to social-distancing protocols.

Per the latest Earnings Outlook, total earnings of the Zacks Consumer Discretionary sector are expected to be down 35.5% year over year. In fourth-quarter 2020, the sector’s earnings fell 61.4% year over year. Meanwhile, revenues in the sector are expected to decline 5.1% year over year. In the previous quarter, the sector’s revenues fell 13.2% year over year.

Sneak Peek into Upcoming Earnings Releases

Let’s focus on a few Consumer Discretionary companies that are scheduled to release first-quarter 2021 earnings on Apr 28.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MGM Resorts International (MGM - Free Report) is scheduled to report results after the closing bell.

The company’s first-quarter results are likely to reflect negative impacts of low visitation in Macau and domestic market due to the coronavirus pandemic, and high operating expenses. Moreover, travel restrictions might have put pressure on the to-be-reported quarter’s performance. Furthermore, dismal performance of Las Vegas Strip resorts, Regional operations and Management as well as other operations are likely to have hurt the company’s performance. However, robust performance of MGM China may have positively impacted the company’s performance. Despite occupancy improving sequentially every month, it is still below the pre-pandemic level. (Read more: Factors Setting the Tone for MGM Resorts Q1 Earnings)

The company has a Zacks Rank #3 and an Earnings ESP of -10.15%.

MGM Resorts International Price and EPS Surprise

 

MGM Resorts International Price and EPS Surprise

MGM Resorts International price-eps-surprise | MGM Resorts International Quote

 

Melco Resorts & Entertainment Limited (MLCO - Free Report) will report first-quarter 2021 results before the opening bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 33.3%. In three of the trailing four quarters, the company’s earnings beat the consensus estimate by an average of 19.2%.

The chances of Melco Resorts beating the Zacks Consensus Estimate in Q1 are dim, even though it carries a Zacks Rank #3. This is because the company has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 30 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Wyndham Hotels & Resorts, Inc. (WH - Free Report) will report first-quarter 2021 results, after market close. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 133.3%. Notably, the company has a trailing four-quarter earnings surprise of 120.3%, on average.

The chances of Wyndham Hotels beating the Zacks Consensus Estimate in Q1 are high. Notably, the Zacks Rank #1 company has an Earnings ESP of +2.82%. In fact, the Most Accurate Estimate for the current quarter is currently at 26 cents per share compared with a broader Zacks Consensus Estimate of 25 cents per share.

Wyndham Hotels & Resorts Inc. Price and EPS Surprise

 

Wyndham Hotels & Resorts Inc. Price and EPS Surprise

Wyndham Hotels & Resorts Inc. price-eps-surprise | Wyndham Hotels & Resorts Inc. Quote

 

Travel + Leisure Co. (TNL - Free Report) will report first-quarter 2021 results before the opening bell. In the previous quarter, the company’s earnings missed the Zacks Consensus Estimate by 34.7%. In three of the trailing four quarters, the company’s earnings missed the consensus estimate by an average of 57.3%. Notably, the Zacks Rank #3 company has an Earnings ESP of +0.00%.  The Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 17 cents.

Travel Leisure Co. Price and EPS Surprise

 

Travel  Leisure Co. Price and EPS Surprise

Travel Leisure Co. price-eps-surprise | Travel Leisure Co. Quote

 

Six Flags Entertainment Corporation (SIX - Free Report) will report first-quarter 2021 results before the opening bell. In the previous quarter, the company’s earnings beat the Zacks Consensus Estimate by 2%. Notably, the Zacks Rank #3 company has an Earnings ESP of +0.00%.  The Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $1.29.

 

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