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Gaming Stock Earnings Releases on Apr 26: LVS, CHDN, MCRI

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The Q1 earnings season has started off on an encouraging note with multiple companies reporting better earnings and revenue growth compared with the past few quarters.

Per the latest Earnings Preview, total earnings for the 95 S&P 500 members that have reported results (as of Apr 21) are up 14.3% from the year-ago period, courtesy of a 4.6% rise in revenues. Notably, 72.6% of the companies that have reported their quarterly numbers have surpassed earnings estimates, while 62.1% have exceeded 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 first-quarter 2017 are expected to be up 3.6% year over year, while revenues are likely to surge 11.3%.

A number of gaming stocks from the sector are expected to report their first quarter results on Apr 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:

Las Vegas Sands Corp. (LVS - Free Report) posted a negative earnings surprise of 4.62% in the last quarter. In fact, the company’s earnings failed to surpass the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 3.99%.

Las Vegas Sands Corp. Price and EPS Surprise
 

Las Vegas Sands Corp. Price and EPS Surprise | Las Vegas Sands Corp. Quote

Notably, our proven model shows that an earnings beat is likely for Las Vegas Sands in the 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.

For the quarter, the company has an Earnings ESP of +1.67% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 60 cents. We expect the first-quarter results to be propelled by new resort addition and provision of better non-gaming options. However, the results may be somewhat hampered as concerns related to the sustainability of revenues from the VIP market linger (read more: Las Vegas Sands to Report Q1 Earnings: A Beat in Store?).

Churchill Downs Inc. (CHDN - Free Report) posted a positive earnings surprise of 19.30% 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 21.26%.

We expect the company to surpass expectations in the quarter due to the combination of its Zacks Rank #3 and Earnings ESP of +13.73%. 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 bottom line is pegged at 51 cents.

Monarch Casino & Resort, Inc. (MCRI - Free Report) recorded a positive earnings surprise of 16.13% last quarter. In fact, the company posted positive earnings surprises in three of the past four quarters, with an average beat of 7.12%.

The company has an Earnings ESP of 0.00% 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 30 cents.

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

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