Leisure Stocks To Watch For Earnings Next Week: RRR, MSG

As the majority of the Q2 earnings season is now behind us, let’s take a look at how the widely diversified Consumer Discretionary sector has fared this time around.

Notably, per our latest Earnings Trends report, 94.3% of the Consumer Discretionary companies in the S&P 500 index have reported their results, as of Aug 10. Growth rate for both earnings and revenues is in the positive territory – 6.1% and 4.0% – respectively. Moreover, the beat ratios for this sector have been noteworthy (87.9% for earnings and 51.5% for revenues).

Leisure Stocks in Focus

Leisure companies usually witness higher sales during the spring and summer seasons. However, the performance of the stocks has been mixed so far this earnings season.

Among the leisure stocks that have reported, Live Nation Entertainment, Inc. (NYSE:LYV) , Pool Corp. (NASDAQ:POOL) and Polaris Industries Inc. (NYSE:PII) posted better-than-expected results for second-quarter 2016, with both earnings and revenues beating the Zacks Consensus Estimate.

However, AMC Entertainment Holdings, Inc. (NYSE:AMC) and SeaWorld Entertainment, Inc. (NYSE:SEAS) missed the Zacks Consensus Estimate for both earnings and revenues.

On the other hand, MGM Resorts International (NYSE:MGM) posted mixed results as it beat the Zacks Consensus Estimate for earnings but lagged the same for revenues.

Two leisure companies are set to report their quarterly results next week. 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:

Red Rock Resorts, Inc. (NASDAQ:RRR) , a gaming company, is slated to release second-quarter 2016 results on Aug 15, after market close.

Notably, our proven model shows that an earnings beat is uncertain for Red Rock Resorts this time around. 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 #3 (Hold) or better – to increase its odds of an earnings surprise.

For the second quarter of 2016, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold), making it difficult to conclusively predict an earnings beat this quarter. Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 40 cents.

The Madison Square (NYSE:SQ) Garden Company (NYSE:MSG) is involved in the sports, entertainment and media industries and is scheduled to report fourth-quarter and fiscal 2016 financial numbers on Aug 19, before the opening bell.

The company posted a negative earnings surprise of 57.14% last quarter. Meanwhile, the company’s trailing four-quarter average earnings surprise stands at a positive 34.79%.

For fourth-quarter fiscal 2016, the company has an Earnings ESP of 0.00% which when combined with a Zacks Rank #3, makes surprise prediction difficult. Meanwhile, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of $1.16 per share.

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

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