The Marcus Corp Earnings: Here’s Why Shares are Up Now

The Marcus Corporation (NYSE:MCS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.46%.

The Marcus Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 43.48% to $0.13 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Decreased 6.73% to $100.59 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Marcus Corporation reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.16. It missed the average revenue estimate of $102.21 million.

Quoting Management: “A weaker film slate for Marcus Theatres® and the fact that fiscal 2013 was a 52-week year compared to last year’s 53 weeks contributed to our reduced results for the fourth quarter and fiscal 2013. Not surprisingly in the cyclical theatre industry, our business has improved significantly in recent weeks, thanks to a very strong early summer film line-up. Comparative results for Marcus Hotels & Resorts were also negatively impacted by the extra week last year, as well as difficult comparisons at several of our group-oriented hotels. However, just like our theatres, these same group-focused hotels are also off to a good start in the new summer quarter,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.

Key Stats (on next page)…

Revenue increased 7.39% from $93.67 million in the previous quarter. EPS increased to $0.13 in the quarter versus EPS of $-0.05 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.42 to a profit $0.43. For the current year, the average estimate has moved down from a profit of $0.74 to a profit of $0.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)