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Leisure Stocks Earnings Lineup for Oct 30: RCL, MGM & More

Zacks Equity Research

The Leisure industry is likely to have gained from higher consumer spending. Apart from higher personal expenditure, increased demand for leisure products and services is likely to get reflected in the industry participants’ quarterly releases.

However, the tariff issues might have curtailed consumer spending on leisure services to a certain extent. Moreover, Trump’s stringent policies on immigration and tourist visas seem to have persuaded international visitors to rethink their vacation plans to the United States.

Per the latest Earnings Preview, total earnings of the Zacks Consumer Discretionary sector are expected to be down 0.3%. However, revenues for the sector are likely to improve by 13%.

Let’s take a sneak peek at how the following leisure stocks are poised prior to their earnings release on Oct 30.

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

Royal Caribbean Cruises Ltd. RCL is scheduled to report third-quarter 2019 earnings before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 3.7%.

Higher passenger ticket revenues; and onboard and other revenues are anticipated to get reflected in the company’s third-quarter results. Per the Zacks Consensus Estimate, passenger ticket revenues are anticipated to improve 15.2% year over year to $2,354 million. Moreover, the consensus mark for the onboard and other revenues is pegged at $868 million, up 15.3% on a year-over-year basis.

Royal Caribbean’s results are anticipated to reflect the increasing demand for cruises and solid booking trends, and other cost-cutting initiatives. (Read more: Royal Caribbean to Report Q3 Earnings: What's in Store?)    

The company has a Zacks Rank #3 and an Earnings ESP of -0.17%.

Royal Caribbean Cruises Ltd. Price and EPS Surprise

 

Royal Caribbean Cruises Ltd. Price and EPS Surprise

Royal Caribbean Cruises Ltd. price-eps-surprise | Royal Caribbean Cruises Ltd. Quote

MGM Resorts International MGM is scheduled to report third-quarter 2019 results, after the closing bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 8%.

MGM Resorts’ third-quarter results are likely to have benefited from robust performance of both China and domestic operations. Further, the consensus mark for revenues from operations in China stands at $762 million, indicating an improvement of 25.7% from the year-ago quarter. Robust convention and room rate are likely to get reflected in the third-quarter results.

The company’s Las Vegas operation is likely to have benefited from improving economic scenario and increased tourism numbers. Meanwhile, MGM Resorts has been consistently making important investments wherever it sees an opportunity. Moreover, the company’s third-quarter results are likely to reflect its solid business model and extensive non-gaming revenues. (Read more: Will China Operations Drive MGM Resorts' Q3 Earnings?)

The company has a Zacks Rank #3 and an Earnings ESP of -24.51%.

MGM Resorts International Price and EPS Surprise

 

MGM Resorts International Price and EPS Surprise

MGM Resorts International price-eps-surprise | MGM Resorts International Quote

Hyatt Hotels Corporation H is slated to report third-quarter 2019 numbers on Oct 30, after the closing bell. In the second quarter, the company’s earnings and revenues surpassed the respective Zacks Consensus Estimate by 81% and 5.1%, respectively. Notably, its earnings topped analysts’ expectations in each of the trailing 14 quarters.

Continued unit growth strategy, robust loyalty program and increase in management, franchise, and other fees is likely to have driven Hyatt’s third-quarter revenues. The company has been steadily investing in various businesses via acquisitions and divestment of low-margin units. Notably, the benefits of these initiatives are anticipated to get reflected in the to-be-reported quarter’s results.

The Zacks Consensus Estimate for Management, franchise and other fees is pegged at $152 million, suggesting growth of 14.3% from the year-ago quarter. However, the estimated figure suggests a decline of 3.8% decline from $158 million reported in the second quarter.

However, lower demand — particularly in the United States and China — is likely to have weighed on the company’s third-quarter earnings. Further, high expenses stemming from mergers and intense competition are expected to have weighed on margins and consequently the bottom line in the third quarter. (Read more: Hyatt's Q3 Earnings to Suffer Despite Unit Expansion)

Hyatt Hotels Corporation Price and EPS Surprise

 

Hyatt Hotels Corporation Price and EPS Surprise

Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote

Melco Resorts & Entertainment Limited MLCO is scheduled to report third-quarter 2019 results, begore the opening bell. In the last reported quarter, the company’s earnings surpassed the consensus estimate by 20%. Notably, earnings have surpassed the estimate in three of the trailing four quarters.

The company has an Earnings ESP of +2.44% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Melco Resorts & Entertainment Limited Price and EPS Surprise

 

Melco Resorts & Entertainment Limited Price and EPS Surprise

Melco Resorts & Entertainment Limited price-eps-surprise | Melco Resorts & Entertainment Limited Quote

Wyndham Destinations, Inc. WYND is scheduled to report third-quarter 2019 results, begore the opening bell. In the last reported quarter, the company’s earnings surpassed the consensus estimate by 6.6%. Notably, earnings have surpassed the estimate in the trailing four quarters, the average being 6.5%.

The company has an Earnings ESP of -0.06% and a Zacks Rank #3.

WYNDHAM DESTINATIONS, INC. Price and EPS Surprise

 

WYNDHAM DESTINATIONS, INC. Price and EPS Surprise

WYNDHAM DESTINATIONS, INC. price-eps-surprise | WYNDHAM DESTINATIONS, INC. Quote

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MGM Resorts International (MGM) : Free Stock Analysis Report
 
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
 
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
 
WYNDHAM DESTINATIONS, INC. (WYND) : Free Stock Analysis Report
 
Melco Resorts & Entertainment Limited (MLCO) : Free Stock Analysis Report
 
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