Leisure Stocks Earnings Releases On Nov 4: MSG, LIND, RDI

We are well into the second half of the Q3 earning season and the widely diversified Consumer Discretionary sector has grabbed much of the attention.

According to the latest Earnings Outlook, 54.3% of the Consumer Discretionary companies in the S&P 500 index have already reported their results as of Nov 2. The growth rate for earnings and revenues is 11% and 7.9%, respectively. Moreover, the beat ratios for this sector are noteworthy (68.4% for earnings and 47.4% for revenues).

Leisure Stocks in Focus

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

Among the leisure stocks that have reported, Polaris Industries Inc. (NYSE:PII) and The Marcus Corporation (NYSE:MC) have delivered better-than-expected performance in the third quarter. Pool Corp. (NASDAQ:POOL) also surpassed earnings expectations but marginally missed the revenue estimates.

However, ClubCorp Holdings, Inc. (NYSE:MYCC) missed both revenue and earnings estimates, while Brunswick Corporation (NYSE:BC) reported in-line earnings and missed the revenue estimates.

Three leisure stocks are set to report their quarterly results on Nov 4. 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:

The Madison Square (NYSE:SQ) Garden Company (NYSE:MSG) posted a negative earnings surprise of 81.90% last quarter. However, the trailing four-quarter average earnings surprise stands at a positive 5.62%.

Notably, our proven model shows that an earnings beat is unlikely for Madison Square Garden in the first-quarter fiscal 2017. This is because, according to our quantitative model, a company needs the right combination of the two key ingredients – a Zacks Rank #3 (Hold) or better and a positive Earnings ESP – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

For the quarter, the company has an Earnings ESP of -4.20% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of $1.19.

Expedition travel company, Lindblad Expeditions Holdings Inc. (NASDAQ:LIND) is unlikely to post a beat in third-quarter 2016 due to the combination of its Zacks Rank #3 and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s earnings stands at 11 cents.

Reading International, Inc. (NASDAQ:RDI) is engaged primarily in the ownership and management of commercial and residential property.

For the third quarter of 2016, we cannot conclusively predict an earnings beat as the company has an Earnings ESP of 0.00%, and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 1 cent.

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

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