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Leisure Stock Q4 Earnings on Jan 26: RCL, ISCA, BC, MCS

The Q4 earnings season has started off on an encouraging note with multiple companies reporting positive earnings as well as sales surprises.

According to the latest Earnings Preview , total earnings for the 63 S&P 500 members that have reported results (as of Jan 20) are up 4.7% from the year-ago quarter, courtesy a 2.7% rise in revenues. Notably, 66.7% of the companies that have reported their quarterly numbers have beaten earnings estimates, while 50.8% 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 overall earnings for the sector in fourth-quarter 2016 are expected to be up 3.4% year over year and revenues are likely to surge 13.2%. During the third quarter, the sector witnessed an improvement of 8.3% and 13.3% in earnings and revenues, respectively.

Three leisure stocks from the sector are set to report their fourth-quarter 2016 numbers on Jan 26. 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:

Global cruise vacation company, Royal Caribbean Cruises Ltd.RCL posted a positive earnings surprise of 3.23% in the 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 22.60%.

Royal Caribbean Cruises Ltd. Price and EPS Surprise

Royal Caribbean Cruises Ltd. Price and EPS Surprise | Royal Caribbean Cruises Ltd. Quote

Our proven model does not conclusively show that Royal Caribbean is likely to beat earnings this time around. This is because, according to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), thereby making it difficult to conclusively predict a beat. The Zacks Consensus Estimate for the quarter's bottom line is pegged at $1.21.

Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Lingering global uncertainty in economies like Europe and China might limit revenue growth, while unfavorable foreign exchange translations may hamper the company's bottom-line performance in the to-be-reported quarter. Nevertheless, strong booking trends, capacity growth, technological innovation along with various profit-generating initiatives are expected to boost the quarter's results (read more: What's in Store for Royal Caribbean in Q4 Earnings? )

International Speedway CorporationISCA recorded a positive earnings surprise of 400% in the last quarter. Moreover, the company's earnings outpaced the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 96.02%.

International Speedway Corporation Price and EPS Surprise

International Speedway Corporation Price and EPS Surprise | International Speedway Corporation Quote

We note that International Speedway is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #3 and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter's earnings is pegged at 78 cents. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Brunswick Corporation 's BC earnings were in line with the Zacks Consensus Estimate in the last quarter. Meanwhile, the trailing four-quarter average earnings surprise stands at a positive 4.32%.

Brunswick Corporation Price and EPS Surprise

Brunswick Corporation Price and EPS Surprise | Brunswick Corporation Quote

For the quarter, we cannot conclusively predict an earnings beat as the company has an Earnings ESP of 0.00%, and a Zacks Rank #4. The Zacks Consensus Estimate for the quarter's bottom line is pegged at 65 cents.

The Marcus CorporationMCS registered a 18.60% positive earnings surprise in the previous quarter.

Marcus Corporation (The) Price and EPS Surprise

Marcus Corporation (The) Price and EPS Surprise | Marcus Corporation (The) Quote

For the quarter, the company has an Earnings ESP of 0.00%, which when combined with a Zacks Rank #3, makes surprise prediction difficult. The Zacks Consensus Estimate for the quarter's earnings is pegged at 28 cents.

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

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Marcus Corporation (The) (MCS): Free Stock Analysis Report

Brunswick Corporation (BC): Free Stock Analysis Report

Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report

International Speedway Corporation (ISCA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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