Marcus Earnings Preview

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Marcus (NYS: MCS) hasn't been able to establish an earnings trend, bouncing between beating and falling short of estimates during the past fiscal year. The company will unveil its latest earnings on Wednesday, March 14. Marcus Corporation is engaged in the lodging and entertainment industries.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Marcus better than competitor Carmike Cinemas overall. Four out of eight analysts rate Carmike Cinemas a buy compared to one of one for Marcus. Analysts haven't adjusted their rating of Marcus for the past three months.
  • Revenue Forecasts: On average, analysts predict $93.7 million in revenue this quarter. That would represent a rise of 11.6% from the year-ago quarter.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 100% giving it an "outperform" rating. The community at large is in line with the All-Stars, with 97.4% assigning it a rating of "outperform." Even with a robust four out of five stars, Marcus' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Revenue has now gone up for three straight quarters.

Now let's get some insight into how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. Marcus has seen rising net margins year-over-year for the last three quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. Here is how Marcus has been doing for the last four quarters:

Quarter

Q2

Q1

Q4

Q3

Gross Margin

49.7%

50.3%

47.6%

41.7%

Operating Margin

7.0%

18.8%

9.3%

0.1%

Net Margin

3.1%

10.1%

3.8%

(2.4%)

For all our Marcus-specific analysis, including earnings and beyond, add Marcus to My Watchlist.

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