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Leisure Stocks to Watch for Earnings: H, HLT, WYNN, VAC

Zacks Equity Research
·6 min read

The leisure industry has been bearing the brunt of the coronavirus pandemic. The hoteliers are witnessing dismal RevPAR and occupancy due to decline in demand. Although there are signs that the hotel industry is slowly regaining momentum, it is still well below the pre-pandemic level. The crisis will continue to hurt the industry’s occupancy rate and RevPAR in 2020. Moreover, higher costs remain a concern for the industry participants. Given that the ongoing COVID-19 crisis continues to impact the global travel industry, hoteliers have been focusing on cost saving measures to counter the crisis.

It is worth mentioning that the leisure industry is widely diversified in nature and comprises companies that provide recreational products and services such as swimming pools, golf courses, boats, outdoor spaces, cruises, hotels and gaming services.

In fact, the pandemic has hit gambling hubs — Macau and Las Vegas — hard. Although most of the casinos in Macau and Las Vegas have resumed operations following the coronavirus-induced shutdown, casino tables are still empty. Notably, most of the casinos operators are focusing on sports betting to drive growth. We believe sports betting market is likely to witness sharp growth in the days ahead.

Let’s take a sneak peek into how the following leisure stocks are poised prior to their quarterly releases.

According to the proven 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.

Hyatt Hotels Corporation H is scheduled to report third-quarter 2020 results on Nov 4, after the closing bell.

The company’s third-quarter results are likely to reflect the negative impact of the coronavirus pandemic. It has been experiencing significant decline in demand due to the COVID-19 pandemic, which is resulting in a system-wide RevPAR decrease. Although the company has been witnessing sequential improvement in RevPAR since April, it is still well below the pre-pandemic level. Further, high operating costs stemming from the pandemic might have weighed on the to-be-reported quarter’s performance.

Nonetheless, increased focus on unit growth, financial flexibility and loyalty programs may have benefited the third-quarter performance. (Read more: Hyatt to Report Q3 Earnings: What's in the Offing?)

The company has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -2.15%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Hyatt Hotels Corporation Price and EPS Surprise

Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation Price and EPS Surprise

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

Hilton Worldwide Holdings Inc. HLT is scheduled to report third-quarter 2020 results on Nov 4, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 79.4%.

Hilton’s third-quarter results are likely to reflect the impact of the coronavirus pandemic. Although occupancy rates are improving, it is still well below the pre-pandemic level. With restrictions being lifted and properties reopening worldwide, Hilton’s business is likely to pick up on improved demand post the summer period. Notably, high operating costs stemming from the pandemic might have weighed on the to-be-reported quarter’s performance. Notably, the Zacks Consensus Estimate for RevPAR is currently pegged at $48.2 million, indicating a decline of 58.1% from $115 million reported in the prior-year quarter.

Moreover, dismal performance across the company’s Franchise and licensing fees, Incentive management fees, and Base and other management fees is likely to get reflected in the third-quarter top line. (Read more: Hilton to Report Q3 Earnings: What's in the Offing?)

The company has a Zacks Rank #4 (Sell) and an Earnings ESP of +20.46%.

Hilton Worldwide Holdings Inc. Price and EPS Surprise

Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. Price and EPS Surprise

Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote

Wynn Resorts, Limited WYNN is scheduled to report third-quarter 2020 results on Nov 5. In the last reported quarter, the company delivered a negative earnings surprise of 25.6%.

Wynn Resorts third-quarter results are likely to reflect the impact of the coronavirus pandemic on its operations. Although the company has resumed operations, dismal visitation due to the pandemic might have weighed on the company’s performance in the quarter to be reported. Moreover, limited numbers of tables have been hurting the company.

The Zacks Consensus Estimate for third-quarter revenues from Wynn Macau operations stands at $118 million, suggesting a sharp decline of 75.1% from the year-ago reported figure. Wynn Palace operations may have negatively impacted the third-quarter performance. The consensus mark for Wynn Palace revenues stands at $147 million, indicating a decline of 75.4% from the year-ago quarter.

The company has a Zacks Rank #5 and an Earnings ESP of -9.05%.

Wynn Resorts, Limited Price and EPS Surprise

Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited Price and EPS Surprise

Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote

Marriott Vacations Worldwide Corporation VAC is scheduled to report third-quarter 2020 results on Nov 4, 2020. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 58.6%.

The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of 60 cents. Notably, the company had reported earnings of $1.97 in the prior-year quarter. Meanwhile, the consensus mark for revenues stands at $609 million, suggesting a decline of 46.5% from the prior-year quarter.

The company has a Zacks Rank #5 and an Earnings ESP of +17.23%.

Marriot Vacations Worldwide Corporation Price and EPS Surprise

Marriot Vacations Worldwide Corporation Price and EPS Surprise
Marriot Vacations Worldwide Corporation Price and EPS Surprise

Marriot Vacations Worldwide Corporation price-eps-surprise | Marriot Vacations Worldwide Corporation Quote

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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
 
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
 
Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report
 
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
 
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