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Factors Setting the Tone for Cedar Fair's (FUN) Q3 Earnings

Zacks Equity Research

Cedar Fair, L.P. FUN is likely to witness earnings decline when it reports third-quarter 2019 results. In the last reported quarter, the company delivered a positive earnings surprise of 29%.

How are Estimates Faring?

The Zacks Consensus Estimate for third-quarter earnings has been stable over the past seven days at $3.46, indicating a decline of 8% from the prior-year reported figure of $3.76. However, revenues are expected to be $683.4 million, suggesting a rise of 3% from the prior-year quarter.

Cedar Fair, L.P. Price and Consensus

Cedar Fair, L.P. Price and Consensus

Cedar Fair, L.P. price-consensus-chart | Cedar Fair, L.P. Quote

Factors at Play

Cedar Fair’s top line in the quarter is likely to have been driven by strong season pass sales, strategic expansion, rise in in-park per capita spending and increase in out-of-park revenues.

Moreover, the company remained focused on driving guest loyalty by investing in immersive attractions and other in-park entertainment initiatives that are expected to have benefited both in-park per capita spending and out-of-park revenues in the quarter to be reported.

Moreover, its focus on acquisitions and mergers to build a stronger portfolio of differentiated and varied services is likely to have contributed to third-quarter earnings.

In second-quarter 2019, the company acquired two Schlitterbahn water parks. These buyouts are likely to have aided its performance in the to-be-reported quarter.

However, increase in costs and higher net interest expenses are likely to have weighed on the company’s earnings in the quarter.  

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Cedar Fair this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat in third-quarter 2019.

Deckers Outdoor Corporation DECK has an Earnings ESP of +3.17% and a Zacks Rank #1.

Fox Corporation FOXA has an Earnings ESP of +2.90% and a Zacks Rank #3.

Wyndham Destinations, Inc. WYND has an Earnings ESP of +0.14% and a Zacks Rank #3.

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Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
 
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