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Leisure Stocks' Q2 Earnings Roster for Aug 3: MAR, CZR, LYV & H

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The leisure industry has been witnessing gradual improvement with reopening of economy and accelerated pace of vaccinations. The Zacks Hotels and Motels industry, which had been rattled by coronavirus pandemic, is slowly getting back on track. Although both RevPAR and occupancy rate are improving, it is still well below the pre-pandemic level.

The cruise industry has been severely impacted by the coronavirus pandemic in second-quarter 2021. Meanwhile, the leisure services industry has been bearing the brunt of high cost burden. However, cruise companies are slowly getting back on track with phased resumption of services.

The leisure industry, nevertheless, continues to benefit from strong demand for recreational products and golf business. Golf manufactures and boating suppliers have been gaining amid the coronavirus pandemic. Rise in fitness products sales due to increasing awareness regarding health and fitness among people has been favoring the industry.

Per the latest Earnings Trend, total earnings of the Zacks Consumer Discretionary sector are expected to decline significantly year over year. However, revenues for the sector are anticipated to increase 33.4% year over year.

Sneak Peek into Upcoming Earnings Releases

Let’s focus on a few Consumer Discretionary companies that are scheduled to release second-quarter 2021 earnings on Aug 3.

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

Marriott International, Inc. MAR is scheduled to report second-quarter results before the opening bell.

The company’s performance in the to-be-reported quarter is likely to have benefited from improved demand in terms of leisure and corporate bookings. Although bookings are likely to trail pre-pandemic levels, sequential improvements are anticipated on the back of continued progress with vaccinations, relaxations in travel restrictions, and localized and personalized marketing strategies. This along with improved credit card spending and strong fees from its branded residences might have contributed to the second-quarter top line.

The Zacks Consensus Estimate for revenues for base management and franchise fees is pegged at $134 million and $378 million, indicating growth of 235% and 107.7% year over year, respectively.

Emphasis on streamlining of operations, enhancement of guest experience, digital traffic, unit expansion strategies, hotel conversions, new project developments, Marriott Bonvoy loyalty program and an asset-light business model are likely to have favored the company’s performance in the to-be-reported quarter.

The company has a Zacks Rank #3 and an Earnings ESP of +40.27%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marriott International, Inc. Price and EPS Surprise

Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. Price and EPS Surprise

Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote

Caesars Entertainment Corporation CZR is slated to report quarterly results after the closing bell.

Caesars Entertainment’s second-quarter performance is likely to have benefited from improving occupancy and booking trends backed by solid operational executions. During first-quarter 2021, occupancy in Las Vegas reached 63%, the uptrend is likely to have continued in the quarter owing to accelerated pace of vaccinations. On its first-quarter conference call, the company announced that it remains optimistic with respect to its booking trends as it is witnessing increasing bookings for group and convention room nights for the second half of 2021.

Reopening of its properties and pent-up demand might have aided the second-quarter top line. It continues to witness encouraging trends for its regional destination properties. The company has been gaining from expansion of sports betting business.

The company has a Zacks Rank #2 and an Earnings ESP of +160.55%.

Caesars Entertainment, Inc. Price and EPS Surprise

Caesars Entertainment, Inc. Price and EPS Surprise
Caesars Entertainment, Inc. Price and EPS Surprise

Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote

Live Nation Entertainment, Inc. LYV is scheduled to report second-quarter results after the closing bell.

The company’s performance in the quarter to be reported is likely to have gained from return of live music events. Previously, the company announced that its U.S. concerts are now fully open. Increased focus on digitalization along with artist-driven initiatives and strong international demand might have aided the company in the to-be-reported quarter.

The coronavirus pandemic has acted as boon for the Ticketmaster. Demand for digital ticketing has increased as venues as well as artists are looking for contactless transactions due to the pandemic.

The Zacks Consensus Estimate for second-quarter concerts revenues stands at $246 million, indicating an improvement of 73.2% from the prior-year quarter. The consensus mark for revenues from Ticketing, and Sponsorship and Advertising are pegged at $130 million and $31.3 million, up from the prior-year quarter figures of ($87) million and $18.4 million, respectively.

The company has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Live Nation Entertainment, Inc. Price and EPS Surprise

Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. Price and EPS Surprise

Live Nation Entertainment, Inc. price-eps-surprise | Live Nation Entertainment, Inc. Quote

Hyatt Hotels Corporation H is scheduled to release quarterly results after the closing bell.

Hyatt’s second-quarter 2021 performance is likely to have gained from strong leisure transient demand as well as improving sentiment around group and business travel. Although bookings are likely to remain below pre-pandemic levels, sequential improvements are anticipated on the back of widening vaccine availability and easing of restrictions. This along with focus on initiatives such as franchise distribution, acquisition strategies and hotel reopenings is likely to have driven second-quarter top line.

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

Solid performance of Owned and leased hotels as well as managed and franchised business segment is likely to get reflected in the company’s second-quarter results. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently at $153 million, indicating growth of 705.3% from $19 million in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $85 million, which indicates a whopping improvement of 608.3% from $12 million in the prior quarter.

The company has a Zacks Rank #3 and an Earnings ESP of +12.24%.


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Marriott International, Inc. (MAR) : Free Stock Analysis Report

Hyatt Hotels Corporation (H) : Free Stock Analysis Report

Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report

Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

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