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Leisure Stock Q3 Earnings Due on Nov 1: LYV, WYNN & More
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Investors may want to take a sneak peek at the leisure industry, which comprises companies that provide recreational services — including swimming pools, golf courses, boats, outdoor spaces, cruises and travel. The leisure space primarily thrives on overall economic growth. Demand for such goods and services are highly susceptible to consumer discretionary spending.
Q3 Expectations for Consumer Discretionary Sector
Like some other sectors, the widely diversified Consumer Discretionary sector (among 14 of the 16 Zacks categorized sectors) is likely to put up a decent show in third-quarter earnings.
Per the Earnings Preview report as of Oct 24, the sector’s aggregate third-quarter EPS is expected to increase 9.2% compared with 18.1% in the last reported quarter. Revenues are expected to increase 7.7%, slightly higher than 6.4% in the second quarter. Margins in the quarter under review are anticipated to expand 0.2% compared with the last reported quarter’s increase of 1.1%.
Currently, the domestic economy is favorable for the consumer discretionary sector on increased demand for goods and services. Steady rise in wages, lower unemployment and upbeat consumer confidence indicate that stocks in the sector stand to rake in gains. Meanwhile, Federal Reserve raised its outlook on U.S. economic growth. The current-year economic growth is currently estimated to be 3.1%. This is likely to support the industry’s growth in 2018.
What Lies Ahead for the Gaming Industry
The Zacks Gaming industry has been experiencing growth since the second half of 2016. The trend is likely to continue through 2018, as the decision taken by the Supreme Court is going to allow sports betting outside Nevada. It is expected to aid the industry.
However, investors’ concern about the industry increased after Nevada Gaming Control Board pointed out that gaming revenues in the state declined for the second straight month in August. The industry has witnessed a sharp decline of 25.7% in the past year compared with 3.6% rally of the S&P 500.
Amid such circumstances, Penn National Gaming, Inc. (PENN - Free Report) is scheduled to report third-quarter 2018 results on Nov 1, before the market opens. The Zacks Consensus Estimate for third-quarter earnings is pegged at 44 cents, reflecting a year-over-year increase of 63%. (Read More: Will Cost-Saving Efforts Aid Penn National Q3 Earnings?)
Penn National currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -5.47%, a combination that does not predict a beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Further, the company missed earnings in one of the trailing four quarters, with an average miss of 16.1%.
Wynn Resorts, Limited (WYNN - Free Report) is slated to post quarterly earnings of $1.77 in the third quarter, which marks an increase of 16.5% from the year-ago quarter. The company’s greater focus on non-gaming revenues is likely to have boosted third-quarter revenues and earnings. Further, optimism surrounding tourism in Las Vegas and increasing visitation pattern are likely to drive revenues. (Read More: Non-Gaming Revenues to Boost Wynn Resorts Q3 Earnings).
However, our proven model does not predict a beat for Wynn Resorts in the quarter to be reported. The company has an Earnings ESP of -3.96% and a Zacks Rank #5 (Strong Sell). It is reporting its third-quarter earnings on Nov 1, after the closing bell.
Melco Resorts & Entertainment Limited (MLCO - Free Report) is expected to release quarterly numbers on Nov 1. The company’s earnings surpassed estimates in two of the trailing four quarters, with an average beat of 4.8%. For the third quarter, the consensus estimate predicts earnings of 22 cents, down from 31 cents in the prior-year quarter. With a Zacks Rank #5 and an Earnings ESP of 0.00%, the company is not poised for an earnings beat in the third quarter.
Melco Resorts & Entertainment Limited Price and EPS Surprise
Per the advance estimate reported by the Bureau of Economic Analysis, gross domestic product (GDP) increased at an annualized rate of 3.5% in the third quarter compared with 4.2% growth in the second quarter.
While real GDP was favored by increased personal consumption expenditures (PCE), private inventory investment, state and local government spending, federal government spending, and non-residential fixed investment; it was slightly affected by a downturn in exports and a deceleration in non-residential fixed investment.
The tricky nature of discretionary spending has been weighing on the sector’s performance. Also, tariff concerns have been affecting the stocks in the leisure space of late. Moreover, Trump’s stringent policies on immigration and tourist visas seem to have impelled international visitors to rethink their vacation plans to the United States. Evidently, there has been a continued slowdown in U.S.-bound air travel bookings ever since Trump took charge. Furthermore, online searches by prospective travelers to the United States have declined sharply.
We note that, so far, overall inflation and commodity price increases have been checked by a relatively stronger dollar. However, household wages, which started to pick up, have not significantly gone up to combat the expected inflationary pressure. This put the leisure industry in a tricky position for quite some time now.
Live Nation Entertainment, Inc. (LYV - Free Report) , an entertainment provider, has a Zacks Rank #3 and an Earnings ESP of +12.06%, suggesting that the company is likely to post a beat in the third quarter of 2018. Live Nation, which is scheduled to report third-quarter numbers on Nov 1, has surpassed estimates in two of the trailing four quarters, recording an average beat of 9.1%. The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at 64 cents, reflecting 20.8% year-over-year increase.
Live Nation Entertainment, Inc. Price and EPS Surprise
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Leisure Stock Q3 Earnings Due on Nov 1: LYV, WYNN & More
Investors may want to take a sneak peek at the leisure industry, which comprises companies that provide recreational services — including swimming pools, golf courses, boats, outdoor spaces, cruises and travel. The leisure space primarily thrives on overall economic growth. Demand for such goods and services are highly susceptible to consumer discretionary spending.
Q3 Expectations for Consumer Discretionary Sector
Like some other sectors, the widely diversified Consumer Discretionary sector (among 14 of the 16 Zacks categorized sectors) is likely to put up a decent show in third-quarter earnings.
Per the Earnings Preview report as of Oct 24, the sector’s aggregate third-quarter EPS is expected to increase 9.2% compared with 18.1% in the last reported quarter. Revenues are expected to increase 7.7%, slightly higher than 6.4% in the second quarter. Margins in the quarter under review are anticipated to expand 0.2% compared with the last reported quarter’s increase of 1.1%.
Currently, the domestic economy is favorable for the consumer discretionary sector on increased demand for goods and services. Steady rise in wages, lower unemployment and upbeat consumer confidence indicate that stocks in the sector stand to rake in gains. Meanwhile, Federal Reserve raised its outlook on U.S. economic growth. The current-year economic growth is currently estimated to be 3.1%. This is likely to support the industry’s growth in 2018.
What Lies Ahead for the Gaming Industry
The Zacks Gaming industry has been experiencing growth since the second half of 2016. The trend is likely to continue through 2018, as the decision taken by the Supreme Court is going to allow sports betting outside Nevada. It is expected to aid the industry.
However, investors’ concern about the industry increased after Nevada Gaming Control Board pointed out that gaming revenues in the state declined for the second straight month in August. The industry has witnessed a sharp decline of 25.7% in the past year compared with 3.6% rally of the S&P 500.
Amid such circumstances, Penn National Gaming, Inc. (PENN - Free Report) is scheduled to report third-quarter 2018 results on Nov 1, before the market opens. The Zacks Consensus Estimate for third-quarter earnings is pegged at 44 cents, reflecting a year-over-year increase of 63%. (Read More: Will Cost-Saving Efforts Aid Penn National Q3 Earnings?)
Penn National currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -5.47%, a combination that does not predict a beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Further, the company missed earnings in one of the trailing four quarters, with an average miss of 16.1%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Penn National Gaming, Inc. Price and EPS Surprise
Penn National Gaming, Inc. Price and EPS Surprise | Penn National Gaming, Inc. Quote
Wynn Resorts, Limited (WYNN - Free Report) is slated to post quarterly earnings of $1.77 in the third quarter, which marks an increase of 16.5% from the year-ago quarter. The company’s greater focus on non-gaming revenues is likely to have boosted third-quarter revenues and earnings. Further, optimism surrounding tourism in Las Vegas and increasing visitation pattern are likely to drive revenues. (Read More: Non-Gaming Revenues to Boost Wynn Resorts Q3 Earnings).
However, our proven model does not predict a beat for Wynn Resorts in the quarter to be reported. The company has an Earnings ESP of -3.96% and a Zacks Rank #5 (Strong Sell). It is reporting its third-quarter earnings on Nov 1, after the closing bell.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited Price and EPS Surprise | Wynn Resorts, Limited Quote
Melco Resorts & Entertainment Limited (MLCO - Free Report) is expected to release quarterly numbers on Nov 1. The company’s earnings surpassed estimates in two of the trailing four quarters, with an average beat of 4.8%. For the third quarter, the consensus estimate predicts earnings of 22 cents, down from 31 cents in the prior-year quarter. With a Zacks Rank #5 and an Earnings ESP of 0.00%, the company is not poised for an earnings beat in the third quarter.
Melco Resorts & Entertainment Limited Price and EPS Surprise
Melco Resorts & Entertainment Limited Price and EPS Surprise | Melco Resorts & Entertainment Limited Quote
Will the Leisure Space Gain From Economic Growth?
Per the advance estimate reported by the Bureau of Economic Analysis, gross domestic product (GDP) increased at an annualized rate of 3.5% in the third quarter compared with 4.2% growth in the second quarter.
While real GDP was favored by increased personal consumption expenditures (PCE), private inventory investment, state and local government spending, federal government spending, and non-residential fixed investment; it was slightly affected by a downturn in exports and a deceleration in non-residential fixed investment.
The tricky nature of discretionary spending has been weighing on the sector’s performance. Also, tariff concerns have been affecting the stocks in the leisure space of late. Moreover, Trump’s stringent policies on immigration and tourist visas seem to have impelled international visitors to rethink their vacation plans to the United States. Evidently, there has been a continued slowdown in U.S.-bound air travel bookings ever since Trump took charge. Furthermore, online searches by prospective travelers to the United States have declined sharply.
We note that, so far, overall inflation and commodity price increases have been checked by a relatively stronger dollar. However, household wages, which started to pick up, have not significantly gone up to combat the expected inflationary pressure. This put the leisure industry in a tricky position for quite some time now.
Live Nation Entertainment, Inc. (LYV - Free Report) , an entertainment provider, has a Zacks Rank #3 and an Earnings ESP of +12.06%, suggesting that the company is likely to post a beat in the third quarter of 2018. Live Nation, which is scheduled to report third-quarter numbers on Nov 1, has surpassed estimates in two of the trailing four quarters, recording an average beat of 9.1%. The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at 64 cents, reflecting 20.8% year-over-year increase.
Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. Price and EPS Surprise | Live Nation Entertainment, Inc. Quote
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>