MCS Earnings Prediction
The chart below shows how MCS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MCS sees a -1.89% change in stock price 10 days leading up to the earnings, and a +2.15% change 10 days following the report. On the earnings day itself, the stock moves by -0.63%. This data can give you a slight idea of what to expect for the next quarter's release.
MCS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
222.28M
11.82%
34.47%
Gross Margin
37.83%
8.55%
20.90%
Operating Margin
14.80%
34.79%
819.25%
Net Margin
10.49%
70.57%
-185.77%
EPS
0.73
143.33%
-215.87%
No Data Available
MCS Earnings Analysis
The Marcus Corporation Corporation (MCS.N) Earnings Conference Call
Positive
Record Revenue Increase: 1. Record Revenue Growth: The Marcus Corporation achieved consolidated revenues of $233 million in Q3 2024, marking an over 11% increase compared to the prior year, with both divisions contributing to this growth.
Theatre Division Revenue Surge: 2. Theatre Division Outperformance: The theatre division reported total revenue of $143.8 million, a 13.6% increase year-over-year, with adjusted EBITDA reaching a record $33.2 million, up 24.3% from the previous year.
Hotel Revenue and EBITDA Growth: 3. Strong Hotel Performance: The Hotels & Resorts division generated revenues of $88.7 million, an 8.1% increase from the prior year, with adjusted EBITDA growing to a record $23.1 million, an 18.7% increase year-over-year.
Cash Flow Improvement: 4. Increased Cash Flow: Cash flow from operations rose to $30 million in Q3 2024, up from $21 million in the prior year, primarily driven by higher EBITDA.
Share Repurchase Initiative: 5. Share Repurchase Program: The company repurchased approximately 693,000 shares of common stock for $9.7 million during the quarter, reflecting confidence in its financial position and commitment to returning capital to shareholders.
Negative
Debt Conversion Expense Impact: 1. Debt Conversion Expense Impact: The company incurred a debt conversion expense of $1.4 million related to the repurchase of $13.5 million of convertible senior notes, negatively impacting net earnings by $1.5 million or $0.05 per share in Q3 2024.
Hotel Segment Stagnation: 2. Underperformance in Hotel Segment: Excluding the impact of the Republican National Convention, the average daily rate for the hotel division was effectively flat compared to the prior year, indicating stagnation in revenue growth.
RevPAR Underperformance Analysis: 3. Lower RevPAR Compared to Competitors: The hotel division underperformed its competitive set by 2.6 percentage points in RevPAR growth, with comparable competitive hotels experiencing a 12.4% increase compared to Marcus' modest growth.
Capital Expenditure Increase: 4. Increased Capital Expenditures: Total capital expenditures rose to $18.5 million in Q3 2024, up from $10 million in the same quarter last year, indicating higher spending without a proportional increase in revenue generation.
Leisure Demand Decline: 5. Soft Leisure Customer Demand: The hotel division continued to experience softer leisure customer demand compared to the previous year, which has been a persistent trend throughout fiscal 2024.
MCS FAQs
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MCS Earning Call Sentiment
The Marcus Corporation (MCS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
MCS.N
-1%Positive
The earnings call highlights strong financial performance, including record EBITDA and revenue growth, alongside strategic initiatives like share repurchases and theater expansion. However, concerns from the Q&A about competitive pressures and unclear management responses could temper enthusiasm. Overall, with strong financials and strategic moves, the stock is likely to see a positive movement, but not overwhelmingly so, due to some uncertainties and risks highlighted.
