We are getting into the thick of the Q2 earnings season with 208 of the S&P 500 members (as of Jul 27) having released their quarterly results.
Though the overall scenario is bordering on the negative, the earnings picture so far has been moderately encouraging. This is because, actual results have turned out to be less dire compared to expectations, with growth pace showing modest improvement from the prior quarter’s level.
In fact, per our latest Earnings Trends report, 73.1% of the companies that have released their Q2 results have beaten earnings estimates while 51.9% have surpassed top-line expectations.
Leisure Stocks in Focus
Leisure companies usually see an uptick during the spring and summer seasons and the performance of the stocks has been mostly good so far this earnings season.
Among the leisure stocks that have reported, Live Nation Entertainment, Inc. LYV, Pool Corp. POOL and Polaris Industries Inc. PII posted better-than-expected second-quarter 2016 results. Moreover, Pool raised its 2016 earnings guidance. Meanwhile, Brunswick Corporation BC topped earnings estimates but narrowly missed on revenues.
However, ClubCorp Holdings, Inc. MYCC and West Marine Inc. WMAR missed the Zacks Consensus Estimate for both earnings and revenues.
A number of leisure companies are set to report their second-quarter results on Aug 1. 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:
AMC Entertainment Holdings, Inc. AMC posted a positive earnings surprise of 28.57% in the last reported quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 0.60%
AMC ENTERTAINMT Price and EPS Surprise
AMC ENTERTAINMT Price and EPS Surprise | AMC ENTERTAINMT Quote
The company has an Earnings ESP of -13.79% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 29 cents per share.
Being part of the entertainment industry, the company is exposed to macroeconomic fluctuations, which have been affecting results in the past few quarters. We do not expect any significant improvement in Q2 (read more: AMC Entertainment Q2 Earnings: What to Expect?).
Black Diamond, Inc. BDE posted a negative earnings surprise of 125.00% last quarter. However, this maker of active outdoor performance equipment and apparel has surpassed earnings estimates in two of the last four quarters, with an average beat of 25.19%.