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Gaming Stocks' Earnings on Oct 27: WYNN, CHDN, PENN
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The Q3 earnings season has started off on an encouraging note with multiple companies reporting better earnings and revenue growth than in the past few quarters.
According to the latest Earnings Preview report, total earnings for the 116 S&P 500 members that have reported results (as of Oct 21) are up 3.3% from the year-ago quarter, courtesy of a 1.8% rise in revenues. Notably, 80.2% of the companies that have reported their quarterly numbers have beaten earnings estimates while 69.2% have surpassed top-line expectations.
Coming to the Consumer Discretionary sector, the space is expected to fare well this earnings season buoyed by an improving job scenario and increasing consumer confidence.
We note that though overall earnings for the sector in third-quarter 2016 are expected to be down 0.1% year over year, revenues are likely to surge 11.7%. Notably, during the second quarter, the sector witnessed an improvement of 8.2% and 7.6% in earnings and revenues, respectively.
A number of gaming stocks from the sector are set to report their third-quarter results on Oct 27. 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:
Wynn Resorts Ltd. (WYNN - Free Report) posted a positive earnings surprise of 10.31% last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 23.27%.
Notably, our proven model shows that an earnings beat is unlikely for Wynn Resorts in the third quarter. This is because, according to our quantitative model, a company needs the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 78 cents. The company’s consistent efforts to boost tourism and traffic in Macau yielded positive results in Q2 as Wynn Macau revenues increased 3.6% year over year in the quarter. We thus expect the momentum to continue in the to-be reported quarter propelled by new resort addition and provision of better non-gaming options.
Churchill Downs Inc. ((CHDN - Free Report) posted a positive earnings surprise of 4.58% in the last quarter. However, the company’s earnings lagged the Zacks Consensus Estimate in two of the last four quarters leading to an average miss of 23.15%.
The company has an Earnings ESP of 0.00%, which when combined with a Zacks Rank #4 (Sell), makes surprise prediction difficult. Meanwhile, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 89 cents.
Penn National Gaming Inc. (PENN - Free Report) recorded a positive earnings surprise of 32.14% last quarter.
The company has an Earnings ESP of -7.41% and a Zacks Rank #3, making it difficult to conclusively predict an earnings beat this quarter. Meanwhile, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 27 cents.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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Gaming Stocks' Earnings on Oct 27: WYNN, CHDN, PENN
The Q3 earnings season has started off on an encouraging note with multiple companies reporting better earnings and revenue growth than in the past few quarters.
According to the latest Earnings Preview report, total earnings for the 116 S&P 500 members that have reported results (as of Oct 21) are up 3.3% from the year-ago quarter, courtesy of a 1.8% rise in revenues. Notably, 80.2% of the companies that have reported their quarterly numbers have beaten earnings estimates while 69.2% have surpassed top-line expectations.
Coming to the Consumer Discretionary sector, the space is expected to fare well this earnings season buoyed by an improving job scenario and increasing consumer confidence.
We note that though overall earnings for the sector in third-quarter 2016 are expected to be down 0.1% year over year, revenues are likely to surge 11.7%. Notably, during the second quarter, the sector witnessed an improvement of 8.2% and 7.6% in earnings and revenues, respectively.
A number of gaming stocks from the sector are set to report their third-quarter results on Oct 27. 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:
Wynn Resorts Ltd. (WYNN - Free Report) posted a positive earnings surprise of 10.31% last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 23.27%.
WYNN RESRTS LTD Price and EPS Surprise
WYNN RESRTS LTD Price and EPS Surprise | WYNN RESRTS LTD Quote
Notably, our proven model shows that an earnings beat is unlikely for Wynn Resorts in the third quarter. This is because, according to our quantitative model, a company needs the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the quarter, the company has an Earnings ESP of -11.54% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 78 cents. The company’s consistent efforts to boost tourism and traffic in Macau yielded positive results in Q2 as Wynn Macau revenues increased 3.6% year over year in the quarter. We thus expect the momentum to continue in the to-be reported quarter propelled by new resort addition and provision of better non-gaming options.
Churchill Downs Inc. ((CHDN - Free Report) posted a positive earnings surprise of 4.58% in the last quarter. However, the company’s earnings lagged the Zacks Consensus Estimate in two of the last four quarters leading to an average miss of 23.15%.
CHURCHILL DOWNS Price and EPS Surprise
CHURCHILL DOWNS Price and EPS Surprise | CHURCHILL DOWNS Quote
The company has an Earnings ESP of 0.00%, which when combined with a Zacks Rank #4 (Sell), makes surprise prediction difficult. Meanwhile, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 89 cents.
Penn National Gaming Inc. (PENN - Free Report) recorded a positive earnings surprise of 32.14% last quarter.
PENN NATL GAMNG Price and EPS Surprise
PENN NATL GAMNG Price and EPS Surprise | PENN NATL GAMNG Quote
The company has an Earnings ESP of -7.41% and a Zacks Rank #3, making it difficult to conclusively predict an earnings beat this quarter. Meanwhile, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 27 cents.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>