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RCI Hospitality Holdings, Inc. RICK is scheduled to report fourth-quarter fiscal 2024 results on Dec. 16. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 163.6%.
Q4 Estimates of RICK
The Zacks Consensus Estimate for earnings is pegged at 37 cents per share, indicating growth of 60.9% from 23 cents a year ago.
The consensus mark for revenues is pegged at $73 million, implying a decrease of 3% from the year-ago figure.
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Factors to Note Ahead of RICK’s Q4 Release
The company’s results in fourth-quarter fiscal 2024 are likely to be aided by an effective capital allocation strategy. Amid economic distress, RCI Hospitality came up with a strategic initiative to improve its business conditions and ensure smooth functioning across all the company’s reportable segments. The Back-to-Basics business approach outlines the company’s aim to ensure the efficient and profitable functioning of its locations. These efforts are likely to have aided the company’s performance in fourth-quarter fiscal 2024. However, the dismal performance of Bombshells restaurants is likely to have negatively impacted the top line.
Q4 Preliminary Revenue Results
In October, the company reported preliminary results for fourth-quarter fiscal 2024. The company reported total sales of $72.1 million, down 2.6% year over year. In the quarter, the company’s same-store sales dropped 1.1% year over year, due to external challenges like Hurricane Beryl, which caused temporary closures at key locations.
In the quarter, sales from Nightclubs was $60.2 million, down 0.5% year over year. This downside can be attributed to the disruption caused by Hurricane Beryl, which led to 10 closure days at three of RICK’s clubs in Houston. In addition, temporary closures, such as the fire at Baby Dolls Fort Worth, impacted overall performance. However, this was partially mitigated by contributions from three new or reformatted clubs (in Harlingen, Lubbock and Tye, TX) and 2.2% same-store sales growth.
Sales from Bombshells restaurants in the fiscal fourth quarter was $11.9 million, down 12.2% from the year-ago quarter’s levels. This downside was due to a fall in same-store sales (down 16.2% year over year). Also, the prolonged closure of five Houston-area locations (impacted by Hurricane Beryl) added to the negatives.
RCI Hospitality Holdings, Inc. Price and EPS Surprise
RCI Hospitality Holdings, Inc. price-eps-surprise | RCI Hospitality Holdings, Inc. Quote
What the Zacks Model Unveils for RICK
Our proven model does not conclusively predict an earnings beat for RCI Hospitality. 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. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
RCI Hospitality has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.