Back to top

Image: Bigstock

Leisure Stocks' Q2 Earnings Roster for Aug 4: MGM & Others

Read MoreHide Full Article

With the Q2 earnings season in its last leg, the widely diversified Consumer Discretionary sector has grabbed much of the spotlight.

Notably, per our latest earnings preview article, the sector witnessed earnings growth of 4.1% (as of Jul 29). Growth rate with respect to the top line for 48.6% of the Consumer Discretionary companies is in the positive territory -- 1.9%. Moreover, the beat ratios for this sector have been noteworthy (88.2% for earnings and 47.1% for revenues).

Leisure Stocks in Focus

Leisure companies usually see an uptick during the spring and summer seasons. However, the performance of the stocks has been a mixed one so far this earnings season.

Among the leisure stocks that have reported, Live Nation Entertainment, Inc. (LYV - Free Report) , Pool Corp. (POOL - Free Report) and Polaris Industries Inc. (PII - Free Report) posted better-than-expected second-quarter 2016 results.

However, AMC Entertainment Holdings, Inc. (AMC - Free Report) and ClubCorp Holdings, Inc. missed the Zacks Consensus Estimate for both earnings and revenues.

A number of leisure companies are set to report their second-quarter results on Aug 4. 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:

MGM Resorts International (MGM - Free Report) posted a positive earnings surprise of 23.08% in the last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 90.84%.

MGM RESORTS INT Price and EPS Surprise

MGM RESORTS INT Price and EPS Surprise | MGM RESORTS INT Quote

The company has an Earnings ESP of -24.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 25 cents per share.

We expect MGM Resorts’ earnings to benefit from improving demand at its properties in Las Vegas. However, sluggish Macau sales are likely to keep the quarter’s revenues under pressure (read more: MGM Resorts Q2 Earnings: Will Macau Hurt Results?).

SeaWorld Entertainment, Inc. posted a positive earnings surprise of 6.67% last quarter. However, the trailing four-quarter average earnings surprise stands at a negative 12.72%.

SEAWORLD ENTERT Price and EPS Surprise

SEAWORLD ENTERT Price and EPS Surprise | SEAWORLD ENTERT Quote

The company has an Earnings ESP of -17.39% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 23 cents per share.

Though the company is making every possible effort to regain customer confidence, negative publicity associated with captive whales and prolonged scrutiny of employee safety practices may hurt revenues in Q2 (read more: Will Soft Sales Keep Hurting SeaWorld Q2 Earnings?).

Zynga, Inc. posted a positive earnings surprise of 40.00% last quarter. In fact, the company posted positive earnings surprises in all of the past four quarters, with an average beat of 43.33%.

ZYNGA INC Price and EPS Surprise

ZYNGA INC Price and EPS Surprise | ZYNGA INC Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at a loss of 3 cents.

Release of popular games coupled with its cost-cutting initiatives should drive top- and bottom-line growth, respectively. However, a slowing web business along with intensifying competition might somewhat mar results (read more: What's in the Cards for Zynga this Earnings Season?).

In the last reported quarter, Interval Leisure Group, Inc. IILG posted in-line earnings.  However, trailing four-quarter average earnings surprise stands at a negative 0.51%.

INTERVAL LEISUR Price and EPS Surprise

INTERVAL LEISUR Price and EPS Surprise | INTERVAL LEISUR Quote

For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 31 cents per share.

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Published in