Leisure Stock Q4 Earnings: Key Predictions For LVS, RCL WYNN

The leisure industry is likely to have benefited from steady rise in wages, lower unemployment and upbeat consumer confidence. Apart from higher personal expenditure, increased demand for leisure products and services is driving the industry participants.

Furthermore, the boating market has been witnessing robust demand and the trend is likely to continue in the near term. According to National Marine Manufacturers Association, the boat manufacturers are continuously increasing production to support high demand. Demand for powerboats, including small sterndrive, wakeboard boats and smaller fiberglass boats with jet technology, is on the rise.

However, the leisure industry has been weighed down by high cost burden. The industry players generally work through multiple business models. Moreover, the rising interest rate environment does not bode well for most leisure and recreation service companies since these rely heavily on debt-financing thanks to the capital-intensive nature of their businesses.

Per the latest Earnings Outlook, total earnings of the Zacks Consumer Discretionary sector are expected to be up 7.1%. Moreover, revenues for the sector are likely to improve 9.2%.

Let’s take a sneak peek into how the following leisure stocks are poised prior to their fourth-quarter earnings.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Las Vegas Sands Corp. (NYSE:LVS) is scheduled to report fourth-quarter 2019 financial numbers on Jan 29.

The company’s fourth-quarter 2019 results are likely to reflect softness in casino, and convention, retail and other. Tough operating environment in Macao, relentless trade conflicts, and highly competitive Las Vegas and Macao markets is likely to have hurt the company’s top line.

The consensus estimate for revenues from casino — which accounts for more than 70% of total revenues — is pegged at $2,455 million, indicating a decline from $2,461 million reported a year ago. Moreover, revenues from convention, retail and other are expected to decline 3.2% year over year to $151 million.

Moreover, decline in revenues at Sand Cotai Central is anticipated to get reflected in Las Vegas Sands’ fourth-quarter top line. For Sand Cotai Central operations, the consensus estimate for revenues is pegged at $519 million, suggesting a decline of 7% from the year-earlier quarter.

Nevertheless, robust performance of Las Vegas operations, Marine Bay Sands, Venetian Macao, Parisian Macao and Sands Macao segments is likely to have offset the negatives in the quarter to be reported. (Read more: Factors Likely to Shape Las Vegas Sands' Q4 Earnings)

The company has a Zacks Rank #3 and an Earnings ESP of -3.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Las Vegas Sands Corp. Price and EPS Surprise

Royal Caribbean Cruises Ltd. (NYSE:RCL) is likely to register decline in the bottom line when it reports fourth-quarter 2019 results.

Higher passenger ticket revenues, and onboard and other revenues are anticipated to get reflected in the company’s fourth-quarter performance. Per the Zacks Consensus Estimate, passenger ticket revenues are likely to increase 9.4% year over year to $1,807 million. Moreover, the consensus mark for the onboard and other revenues is pegged at $733 million, suggesting growth of 7.6% from the year-ago quarter.

Robust booking trends and rise in demand for cruises are likely to have contributed to the company’s fourth-quarter performance. While the company’s capacity growth is likely to have aided it in meeting the increased demand, ship innovation and technology investment are anticipated to have led to higher yields in the fourth quarter. (Read more: What's in Store for Royal Caribbean's Q4 Earnings?)

The company has a Zacks Rank #3 and an Earnings ESP of +0.61%.

Royal Caribbean Cruises Ltd. Price and EPS Surprise

Wynn Resorts, Limited (NASDAQ:WYNN) is likely to register decline in the bottom line when it reports fourth-quarter 2019 results.

Robust performance of Las Vegas operations is likely to get reflected in the company’s fourth-quarter performance. The Zacks Consensus Estimate for fourth-quarter revenues from Las Vegas operations is pegged at $404 million, suggesting growth of 2.5% from the year-ago reported figure. The company’s Las Vegas operations are likely to have benefited from increase in visitation, improving job scenario and consumer spending environment.

However, Wynn Palace operations are likely to have weighed on the fourth-quarter performance. The consensus mark for revenues from Wynn Palace is pegged at $625 million, indicating a decline of 15.7% from the year-ago comparable period. (Read more: Wynn Resorts to Report Q4 Earnings: What's in Store?)

The company has a Zacks Rank #4 (Sell) and an Earnings ESP of +4.05%.

Wynn Resorts, Limited Price and EPS Surprise

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>