Marcus' (MCS) Q3 Earnings Coming Up: Here's What to Expect
The Marcus Corporation MCS is scheduled to report its third-quarter fiscal 2023 results on Nov 1 before the opening bell.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 20.7% and 0.7%, respectively. Also, the bottom and the top lines grew 45.8% and 4.3% year over year.
Marcus’ earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average surprise being 17.4%.
How are Estimates Placed?
The Zacks Consensus Estimate for the company's fiscal third-quarter earnings per share has increased to 34 cents from 20 cents over the past 30 days. The estimated figure indicates a whopping 240% hike from the prior-year quarter’s reported earnings of 10 cents per share.
Marcus Corporation (The) Price and EPS Surprise
Marcus Corporation (The) price-eps-surprise | Marcus Corporation (The) Quote
The consensus mark for revenues is pegged at $209.3 million, suggesting growth of 13.9% from the year-ago reported figure of $183.7 million.
Factors to Note
Marcus’ to-be-reported quarter’s revenues are likely to increase year over year thanks to solid contributions from both its operating divisions, which are Marcus Theatres and Marcus Hotels & Resorts. The growth trend is attributable to strong demand trends for movie theatres and group travel accompanied by the company’s operational excellence initiatives.
For the fiscal third quarter, the Zacks Consensus Estimate for Marcus Theatres and Marcus Hotels & Resorts revenues is pegged at $110 million, up 8.9%, and $80 million, down 2.4%, respectively, year over year.
Meanwhile, the inflationary environment, and increased total costs and expenses are likely to have partially put pressure on the company’s bottom line. However, despite the macroeconomic challenges, an increase in the average ticket price and average concession revenue per person along with improving banquet and catering revenue pace are most likely to have more than offset these headwinds.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Marcus this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: MCS has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which according to our model, have the right combination of elements to deliver an earnings beat this time around.
DraftKings Inc. DKNG has an Earnings ESP of +17.52% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DKNG’s earnings for the to-be-reported quarter are expected to increase 31%. The company reported better-than-expected earnings in three out of the four quarters and missed on the remaining one occasion, the average surprise being 12%.
MGM Resorts International MGM has an Earnings ESP of +2.61% and a Zacks Rank of 2.
MGM’s earnings for the to-be-reported quarter are expected to increase 142.5%. The company reported better-than-expected earnings in three out of the trailing four quarters and missed the same on the remaining occasion, the average surprise being 105.7%.
Marriott International, Inc. MAR has an Earnings ESP of +1.72% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 24.3%. The company reported better-than-expected earnings in three out of the trailing four quarters and met expectations in the remaining quarter, the average surprise being 5.5%.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Marcus Corporation (The) (MCS) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
