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Likely Coronavirus Impact on Cedar Fair (FUN) Q1 Earnings

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Zacks Equity Research
·3 min read
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Cedar Fair, L.P. FUN is scheduled to report first-quarter 2020 results on May 6. In the last reported quarter, the company reported a negative earnings surprise of 29%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter is pegged at a loss of $1.72, compared with a loss of $1.46 per share reported in the prior year quarter. Over the past 30 days, the company’s earnings estimates have been stable. The Zacks Consensus Estimate for revenues stands at $59.43 million, indicating a decline of 11.3% from the prior-year quarter.

Factors to Note

Cedar Fair’s results in the quarter to be reported are likely reflect the impact of the coronavirus pandemic. The company expects first-quarter 2020 revenue to be nearly $10-15 million, lower than the prior-year comparable period. Management recently announced that prior to the mid-March coronavirus related disruption its revenues were higher than the prior-year period. In the last two weeks of March, sales of advance purchase products, which include season passes and related all-season products, decreased sharply due to the coronavirus pandemic. Moreover, increase in costs and higher net interest expenses are likely to have weighed on the company’s first-quarter performance.  

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

Cedar Fair, L.P. Price and EPS Surprise

Cedar Fair, L.P. Price and EPS Surprise
Cedar Fair, L.P. Price and EPS Surprise

Cedar Fair, L.P. price-eps-surprise | Cedar Fair, L.P. Quote

What the Zacks Model Unveils

Our proven model 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. 

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

Cedar Fair has a Zacks Rank #3 and an Earnings ESP of +2.23%, a combination that increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stock With Favorable Combinations 

Here are a few stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post earnings beat in this quarter.

GP Strategies Corporation GPX has an Earnings ESP of +58.33% and a Zacks Rank #3, at present.

BJ's Wholesale Club Holdings, Inc. BJ currently has an Earnings ESP of +8.50% and a Zacks Rank #2.

Activision Blizzard, Inc. ATVI currently has an Earnings ESP of +10.39% and a Zacks Rank #2.

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