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Leisure Stocks' Q2 Earnings Roster for Aug 2: CHH, HGV, ZNGA

The second-quarter earnings season has crossed the halfway mark. We notice that the Consumer Discretionary sector has, so far, outpaced most other sectors in terms of top-line growth and delivered strong bottom-line growth as well.

Per the latest Earnings Preview, 42.9% of the Consumer Discretionary companies in the S&P 500 index have already reported their results as of Jul 28. Growth rate for earnings and revenues is 11.4% and 13.3%, respectively. Moreover, the beat ratios for the sector have been remarkable (66.7% for earnings and 53.3% for revenues).

Coming to the leisure companies from the Consumer Discretionary sector, we note that their performance has mostly good so far this earnings season as they usually see an uptick during the spring and summer seasons.

Among the leisure stocks that have already reported results, Hilton Worldwide Holdings, Inc. HLT, Las Vegas Sands Corp. LVS and Wynn Resorts, Inc. WYNN delivered an impressive performance with earnings and revenues topping the Zacks Consensus Estimate.

Meanwhile, Melco Crown Entertainment Limited MLCO and Penn National Gaming, Inc.’sPENN results were a mixed bag. While their respective earnings missed the consensus mark, revenues topped the same.

Three leisure stocks from the sector are set to report their second-quarter 2017 results on Aug 2. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:

Choice Hotels International Inc. CHH delivered a positive earnings surprise of 4.08% in the last quarter. In fact, it has surpassed estimates in each of the trailing four quarters, recording an average positive surprise of 5.02%.

Notably, our proven model does not conclusively show an earnings beat for Choice Hotels in the quarter. This is because a company needs to have the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise, which is not the case here.

For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 77 cents.

Choice Hotels International, Inc. Price and EPS Surprise

 

Hilton Grand Vacations Inc. HGV came up with a positive earnings surprise of 34.21% in the last quarter.

However, the company is unlikely to post a beat in second-quarter 2017 due to the combination of its Earnings ESP of 0.00% and Zacks Rank #3.

The Zacks Consensus Estimate for the quarter’s earnings is pegged at 45 cents.

Hilton Grand Vacations Inc. Price and EPS Surprise

 

Meanwhile, Zynga, Inc. ZNGA posted in-line earnings in the last quarter. Notably, its trailing four-quarter average earnings surprise is a negative 20.83%.

For the quarter, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, the Zacks Consensus Estimate for the quarter is pegged at break-even earnings.

Although Zynga has been witnessing slow user growth for a while, we expect franchises like Words With Friends and Zynga Poker as well as new games like CSR 2, FarmVille: Tropic Escape and Dawn of Titans to drive its top line in the to-be-reported quarter (read more: Zynga to Report Q2 Earnings: Is a Surprise in Store?).

Zynga Inc. Price and EPS Surprise

 

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

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Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
 
Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
 
Zynga Inc. (ZNGA): Free Stock Analysis Report
 
Penn National Gaming, Inc. (PENN): Free Stock Analysis Report
 
Choice Hotels International, Inc. (CHH): Free Stock Analysis Report
 
Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
 
Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report
 
Melco Crown Entertainment Limited (MLCO): Free Stock Analysis Report
 
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