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Leisure Stocks' Q4 Earnings Due on Feb 22: NCLH, SIX, MYCC

The fourth-quarter earning season is in its last leg, and the widely diversified Consumer Discretionary sector has grabbed much of the attention.

According to the latest Earnings Preview , 88.6% of the Consumer Discretionary companies in the S&P 500 index have reported their results as of Feb 17. The growth rates for earnings and revenues are 10.6% and 12.9%, respectively. Also, the beat ratios for this sector are noteworthy (77.4% for earnings and 61.3% for revenues).

Leisure Stocks in Focus

Turning our focus on the leisure companies from the Consumer Discretionary sector, we note that their performance has been mixed so far this earnings season.

Among the leisure stocks that have already reported results, Regal Entertainment Group RGC posted robust results beating both top- and bottom-line expectations. Meanwhile, Royal Caribbean Cruises Ltd. RCL and Brunswick Corporation BC delivered mixed performance in the fourth quarter. Both the companies surpassed earnings expectations, but missed revenue estimates. However, Callaway Golf Company's ELY loss was wider than the consensus estimate and its revenues too missed the mark.

Three leisure stocks from the sector are set to report their fourth-quarter and full-year 2016 results on Feb 22. 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:

Cruise line operator Norwegian Cruise Line Holdings Ltd.NCLH recorded a positive earnings surprise of 1.89% in the last quarter. Nevertheless, the trailing four-quarter average earnings surprise is a negative 8.14%.

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise | Norwegian Cruise Line Holdings Ltd. Quote

Our proven model does not conclusively show that Norwegian Cruise Line is likely to beat earnings this time. 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 #1 (Strong Buy), #2 (Buy) or #3 (Hold) - to increase its odds of an earnings surprise.

For the fourth quarter of 2016, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

The Zacks Consensus Estimate for the quarter's bottom line is pegged at 56 cents. Slow economic growth, terror attacks and the Brexit referendum are expected to take a toll on Norwegian Cruise Line's revenues. Nonetheless, strong Mediterranean booking trends along with capacity growth are expected to somewhat bolster the quarter's results (read more: Will Norwegian Cruise Line Q4 Earnings Disappoint? ).

Owner and operator of regional parks, Six Flags Entertainment CorporationSIX , posted a negative earnings surprise of 33.13% in the last quarter. However, the trailing four-quarter average earnings is a positive 33.55%.

Six Flags Entertainment Corporation New Price and EPS Surprise

Six Flags Entertainment Corporation New Price and EPS Surprise | Six Flags Entertainment Corporation New Quote

We note that Six Flags Entertainment is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #3 and Earnings ESP of 0.00%. You can see the complete list of today's Zacks #1 Rank stocks here .

The Zacks Consensus Estimate for the quarter's earnings stands at a break-even.

ClubCorp Holdings, Inc.MYCC registered a 28.57% negative earnings surprise in the previous quarter. Also, the trailing four-quarter average earnings surprise is negative 56.01%.

ClubCorp Holdings, Inc. Price and EPS Surprise

ClubCorp Holdings, Inc. Price and EPS Surprise | ClubCorp Holdings, Inc. Quote

For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3, thereby making it difficult to conclusively predict a beat. Notably, the Zacks Consensus Estimate for the quarter's bottom line is pegged at 15 cents.

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

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Brunswick Corporation (BC): Free Stock Analysis Report

Callaway Golf Company (ELY): Free Stock Analysis Report

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

Regal Entertainment Group (RGC): Free Stock Analysis Report

Six Flags Entertainment Corporation New (SIX): Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report

ClubCorp Holdings, Inc. (MYCC): 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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