Marcus Earnings Preview

While Marcus (NYSE: MCS) missed estimates last quarter, investors hope that it will bounce back and outpace Wall Street expectations this quarter. The company will unveil its latest earnings on Thursday. Marcus 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 Regal Entertainment Group overall. Fifteen out of 21 analysts rate Regal Entertainment Group a buy compared to two of two for Marcus. Analysts haven't adjusted their rating of Marcus for the past three months.
• Revenue forecasts: On average, analysts predict $89.6 million in revenue this quarter. That would represent a rise of 0.6% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.11 per share. Estimates range from $0.09 to $0.12.

What our community says
CAPS All-Stars are solidly backing the stock with 100% giving it an outperform rating. The community at large concurs with the All-Stars with 88.6% assigning it a rating of outperform. Fools have embraced Marcus, though the message boards have been quiet lately with only 20 posts in the past 30 days. Marcus' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Marcus' income has fallen year over year by an average of more than threefold. A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

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