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Leisure Stocks' Q1 Earnings Due on May 10: NCLH, HTHT, PNK

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The first-quarter earnings season has fared well so far and the widely diversified Consumer Discretionary sector has grabbed much of the attention.

Per the latest Earnings Preview, 68.6% of the Consumer Discretionary companies in the S&P 500 index have reported their results, as of May 5. The growth rate for earnings and revenues is 18.4% and 15.4%, respectively. In fact, the beat ratio of 83.3% and 54.2% for earnings and revenues, respectively, is also noteworthy.

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, Brunswick Corporation (BC - Free Report) and Callaway Golf Company delivered an impressive performance with both earnings and revenues topping the Zacks Consensus Estimate. Meanwhile, West Marine, Inc. delivered mixed performance in the first quarter. Its loss was narrower than expected while revenues missed estimates. However, Cedar Fair, L.P.’s (FUN - Free Report) 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 first-quarter 2017 results on May 10. 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 - Free Report) recorded a negative earnings surprise of 14.29% in the last quarter. Moreover, its trailing four-quarter average negative surprise is 9.21%.

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise

 

Notably, our proven model shows that an earnings beat is likely for Norwegian Cruise Line in the quarter. This is because the company has 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 first quarter, the company has an Earnings ESP of +2.70% 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 37 cents. Increasing business and leisure travel driven by improving economic indicators and improved job market scenario could benefit first-quarter results. Strong Mediterranean booking trends along with capacity growth might further bolster revenues (read more: Norwegian Cruise Line Q1 Earnings: A Beat in Store?).

China Lodging Group, Limited (HTHT - Free Report) recorded a positive earnings surprise of 8.70% last quarter. In fact, the company posted positive earnings surprises in each of the past four quarters, with an average beat of 48.93%.

China Lodging Group, Limited Price and EPS Surprise

 

For the quarter, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #1 (Strong Buy).

The Zacks Consensus Estimate for the quarter’s earnings is pegged at 20 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pinnacle Entertainment, Inc. recorded a positive earnings surprise of 225% last quarter. However, the company lagged estimates in two of the past four quarters, with an average miss of 217.35%.

Pinnacle Entertainment, Inc. Price and EPS Surprise

 

In the to-be-reported quarter, this company is unlikely to post a beat 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 16 cents.

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

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