Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

Marcus (MCS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earnings ...

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $233 million, an over 11% increase year-over-year, with both divisions contributing to revenue growth [11] - Consolidated operating income was $32.8 million, and adjusted EBITDA reached $52.3 million, marking record results for the third quarter [11] - Net earnings for the third quarter were $24.8 million or $0.78 per share, excluding the impacts of convertible debt repurchases [12] Business Line Data and Key Metrics Changes - Theatres division revenue was $143.8 million, a 13.6% increase compared to the prior year, with comparable theatre admission revenue up 9.5% and attendance increasing by 7.1% [13][14] - Hotels & Resorts division revenues were $88.7 million, an 8.1% increase year-over-year, with RevPAR for comparable owned hotels growing 9.8% [19] Market Data and Key Metrics Changes - U.S. box office receipts increased 3.8% during the fiscal 2024 third quarter compared to the same period in fiscal 2023, indicating the company's theatres outperformed the industry by approximately 5.7 percentage points [14] - The upper-upscale hotel segment experienced a RevPAR increase of 1.4%, indicating the company's hotels outperformed the industry by 8.4 percentage points, including the impact of the Republican National Convention [21] Company Strategy and Development Direction - The company is focused on maintaining a balanced approach to capital allocation, investing in growth while returning capital to shareholders through dividends and share repurchases [30][53] - The management expressed optimism about the long-term future of the theatre business, citing a strong film slate for the remainder of 2024 and 2025 [43][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the theatre industry is experiencing a significant recovery, with record results achieved in both divisions, and emphasized the importance of a favorable film slate [33][34] - The Republican National Convention positively impacted hotel revenues, demonstrating the potential for future events to drive demand [46] Other Important Information - The company repurchased $13.5 million of convertible senior notes for $15.5 million, marking the retirement of substantially all convertible debt [28] - Cash flow from operations was $30 million, an increase from $21 million in the prior year quarter, primarily due to higher EBITDA [25] Q&A Session Summary Question: Impact of consumer behavior on attendance - Management acknowledged that the theatre business often benefits during economic slowdowns as it becomes a more affordable entertainment option [60] Question: Capital allocation and M&A opportunities - Management is open to M&A but noted a slow market for transactions, with many potential sellers waiting for more stable conditions [62] Question: Attendance trends and customer demographics - Management indicated that the changes to Value Tuesday and other promotions have successfully attracted value-driven customers, contributing to improved attendance [68][78] Question: Concession sales and merchandise - Management confirmed an increase in souvenir items, which has positively impacted concession sales, although there is not a significant introduction of standalone merchandise [79]

For the quarter ended September 2024, Marcus (MCS) reported revenue of $232.67 million, up 11.5% over the same period last year. EPS came in at $0.78, compared to $0.32 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $211.69 million, representing a surprise of +9.91%. The company delivered an EPS surprise of +69.57%, with the consensus EPS estimate being $0.46.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Marcus (MCS) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 69.57%. A quarter ago, it was expected that this operator of movie theaters, hotels and resorts would post earnings of $0.03 per share when it actually produced a loss of $0.17, delivering a surprise of -666.67%.Over the las ...

[Overall Performance Summary](index=1&type=section&id=The%20Marcus%20Corporation%20Reports%20Record%20Third%20Quarter%20Fiscal%202024%20Results) The Marcus Corporation reported strong Q3 FY2024 results with significant growth in net earnings and Adjusted EBITDA, while year-to-date performance was impacted by debt conversion expenses [Third Quarter Fiscal 2024 Highlights](index=1&type=section&id=Third%20Quarter%20Fiscal%202024%20Highlights) The Marcus Corporation achieved record third-quarter fiscal 2024 results, demonstrating significant year-over-year growth across key financial metrics and outperforming industry benchmarks in both divisions Q3 FY2024 Financial Performance vs. Q3 FY2023 | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $232.7M | $208.8M | +11.4% | | **Operating Income** | $32.8M | $20.9M | +56.6% | | **Net Earnings** | $23.3M | $12.2M | +90.6% | | **Net Earnings per Diluted Share** | $0.73 | $0.32 | +128.1% | | **Adjusted EBITDA** | $52.3M | $42.3M | +23.5% | - Net earnings for Q3 2024 were negatively impacted by **$1.5 million** (**$0.05 per share**) due to debt conversion expenses[4](index=4&type=chunk)[5](index=5&type=chunk) - The company completed the retirement of its convertible debt to prevent future dilution and repurchased nearly **$10 million** of its shares during the quarter[2](index=2&type=chunk) [First Three Quarters Fiscal 2024 Highlights](index=2&type=section&id=First%20Three%20Quarters%20Fiscal%202024%20Highlights) For the first three quarters of fiscal 2024, the company reported a net loss primarily due to a $16.5 million debt conversion expense, despite a decline in revenues and operating income First Three Quarters FY2024 Financial Performance vs. FY2023 | Metric | First Three Quarters FY2024 | First Three Quarters FY2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $547.2M | $568.0M | -3.7% | | **Operating Income** | $18.4M | $32.8M | -43.9% | | **Net Earnings (Loss)** | ($8.8M) | $16.2M | -154.3% | | **Net Earnings (Loss) per Diluted Share** | ($0.28) | $0.46 | -160.9% | | **Adjusted EBITDA** | $76.5M | $90.5M | -15.5% | - The net loss for the first three quarters of fiscal 2024 was significantly impacted by **$16.5 million** (**$0.52 per share**) in debt conversion expenses[8](index=8&type=chunk)[9](index=9&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Both Marcus Theatres and Marcus Hotels & Resorts divisions achieved record third-quarter results, driven by strong industry outperformance and strategic initiatives [Marcus Theatres®](index=2&type=section&id=Marcus%20Theatres%C2%AE) The Marcus Theatres division achieved record third-quarter results with significant revenue and operating income growth, driven by strong attendance and increased concession revenues Marcus Theatres Q3 FY2024 Performance | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $143.8M | $126.6M | +13.6% | | **Operating Income** | $21.8M | $11.4M | +91.3% | | **Adjusted EBITDA** | $33.2M | $26.7M | +24.3% | - Same-store attendance grew **7.1%**, outperforming the industry by **5.7 percentage points**, boosted by promotions like Everyday Matinee and Value Tuesday[12](index=12&type=chunk) - Average ticket price increased by **2.6%**, and average concession revenues per person rose by **7.9%** compared to the prior year's quarter[13](index=13&type=chunk) - The top-performing films in Q3 were *Deadpool & Wolverine*, *Despicable Me 4*, *Twisters*, *Inside Out 2*, and *Beetlejuice Beetlejuice*[14](index=14&type=chunk) - The company is optimistic about the Q4 film slate, which includes *Gladiator II*, *Wicked*, and *Moana 2*, expecting to end the year on a high note[14](index=14&type=chunk)[15](index=15&type=chunk) [Marcus Hotels & Resorts®](index=3&type=section&id=Marcus%20Hotels%20%26%20Resorts%C2%AE) The Marcus Hotels & Resorts division delivered record third-quarter results, with strong revenue and operating income growth, significantly boosted by the Republican National Convention and RevPAR outperformance Marcus Hotels & Resorts Q3 FY2024 Performance | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues (before cost reimbursements)** | $79.0M | $72.1M (derived) | +9.6% | | **Operating Income** | $17.0M | $14.4M | +18.5% | | **Adjusted EBITDA** | $23.1M | $19.4M | +18.7% | - Revenue per available room (RevPAR) at comparable company-owned hotels increased by **9.8%**, outperforming the industry by **8.4 percentage points**[17](index=17&type=chunk) - Key drivers for the record quarter included the Republican National Convention in Milwaukee, improvements in group business, and the summer leisure travel season[18](index=18&type=chunk) - Group booking pace for the remainder of fiscal 2024 and for fiscal 2025 is running ahead of the same periods last year[18](index=18&type=chunk) - Four of the division's properties received high honors in Condé Nast Traveler's Readers' Choice Awards, including The Pfister Hotel and Grand Geneva Resort & Spa[19](index=19&type=chunk) [Financial Position and Shareholder Returns](index=3&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) The company demonstrated commitment to shareholder returns through share repurchases and strengthened its balance sheet by refinancing convertible debt [Return of Capital to Shareholders](index=3&type=section&id=Return%20of%20Capital%20to%20Shareholders) The company returned $16.5 million to shareholders year-to-date through share repurchases and dividends, including $9.7 million in Q3 2024 - In Q3 2024, the company repurchased **693,000 shares** of common stock for **$9.7 million**[20](index=20&type=chunk) - During the first three quarters of 2024, the company returned a total of **$16.5 million** to shareholders via share repurchases and dividends[20](index=20&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) The Marcus Corporation maintains a strong financial position with significant liquidity, having simplified its capital structure by retiring convertible debt and refinancing with new senior notes to extend maturities - At the end of Q3 2024, the company had **$248.6 million** in cash and revolving credit availability[22](index=22&type=chunk) - The company repurchased and retired substantially all (**$99.9 million of $100 million**) of its 5.00% Convertible Senior Notes due 2025[23](index=23&type=chunk)[24](index=24&type=chunk) - The repurchase of convertible notes resulted in a debt conversion expense of **$1.4 million** in Q3 and **$15.3 million** for the first three quarters of fiscal 2024[25](index=25&type=chunk) - Completed a private placement of **$100 million** in new senior notes (**$60M at 6.89% due 2031** and **$40M at 7.02% due 2034**) to refinance the repurchases and extend debt maturities[26](index=26&type=chunk)[27](index=27&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section provides detailed consolidated financial statements, including earnings, balance sheets, segment performance, cash flow, and reconciliation of non-GAAP measures [Consolidated Statements of Earnings (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Earnings%20%28Loss%29) The consolidated statement of earnings shows a significant increase in Q3 2024 net earnings, but a year-to-date net loss primarily due to a $15.3 million debt conversion expense Consolidated Earnings Summary (in thousands) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $232,668 | $208,766 | $547,247 | $568,049 | | **Operating Income** | $32,782 | $20,933 | $18,354 | $32,755 | | **Debt Conversion Expense** | ($1,410) | $0 | ($15,318) | $0 | | **Net Earnings (Loss)** | $23,314 | $12,234 | ($8,773) | $16,234 | | **Net Earnings (Loss) per Share - Diluted** | $0.73 | $0.32 | ($0.28) | $0.46 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheet as of September 26, 2024, reflects a slight decrease in total assets and liabilities, with a minor reduction in shareholders' equity Balance Sheet Summary (in thousands) | Account | Sept 26, 2024 | Dec 28, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,046,959** | **$1,065,103** | | Cash and cash equivalents | $28,415 | $55,589 | | Property and equipment, net | $686,993 | $682,262 | | **Total Liabilities** | **$584,667** | **$593,931** | | Long-term debt (incl. current) | $173,093 | $169,851 | | **Total Shareholders' Equity** | **$462,292** | **$471,172** | [Segment Information](index=9&type=section&id=Segment%20Information) Segment data for Q3 2024 highlights strong year-over-year growth in operating income for both the Theatres and Hotels/Resorts divisions Q3 2024 vs Q3 2023 Segment Performance (in thousands) | Segment | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Theatres** | Revenues | $143,843 | $126,585 | | | Operating Income | $21,761 | $11,377 | | | Adjusted EBITDA | $33,187 | $26,695 | | **Hotels/Resorts** | Revenues | $88,738 | $82,098 | | | Operating Income | $17,041 | $14,377 | | | Adjusted EBITDA | $23,074 | $19,446 | [Supplemental Data (Cash Flow)](index=9&type=section&id=Supplemental%20Data%20%28Unaudited%29) For the first three quarters of 2024, net cash from operating activities decreased, while net cash used in investing activities significantly increased due to higher capital expenditures Cash Flow Summary - First Three Quarters (in thousands) | Activity | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $51,374 | $68,642 | | Net cash from investing activities | ($58,397) | ($26,882) | | Net cash from financing activities | ($19,770) | ($26,184) | | Capital expenditures | ($53,770) | ($25,836) | [Reconciliation of Net Earnings (loss) to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20earnings%20%28loss%29%20to%20Adjusted%20EBITDA) This section reconciles GAAP Net Earnings (Loss) to Adjusted EBITDA for both the third quarter and year-to-date periods, detailing key adjustments including debt conversion expenses Q3 2024 Reconciliation Summary (in thousands) | Item | Amount | | :--- | :--- | | **Net Earnings** | **$23,314** | | Depreciation & Amortization | $17,274 | | Income Tax Expense | $5,406 | | Interest Expense | $3,062 | | Debt Conversion Expense | $1,410 | | Other Adjustments | $2,799 | | **Adjusted EBITDA** | **$52,275** | YTD 2024 Reconciliation Summary (in thousands) | Item | Amount | | :--- | :--- | | **Net Loss** | **($8,773)** | | Depreciation & Amortization | $49,988 | | Debt Conversion Expense | $15,318 | | Interest Expense | $8,160 | | Share-based Compensation | $7,157 | | Other Adjustments | $4,676 | | **Adjusted EBITDA** | **$76,526** |

Wall Street expects a year-over-year increase in earnings on higher revenues when Marcus (MCS) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 31. On ...

Core Insights - The Marcus Corporation (MCS) is highlighted as a strong value stock with a Zacks Rank of 2 (Buy) and a Value grade of A [1][2] - Value investing is emphasized as a popular strategy, focusing on fundamental analysis and traditional valuation metrics to identify undervalued stocks [1] Valuation Metrics - MCS has a Price-to-Sales (P/S) ratio of 0.76, significantly lower than the industry average P/S of 1.21, indicating potential undervaluation [2] - The Price-to-Cash Flow (P/CF) ratio for MCS is 10.64, compared to the industry average of 16.75, suggesting a solid cash outlook [2] - Over the past 12 months, MCS's P/CF has fluctuated between a high of 10.72 and a low of 3.93, with a median of 7.09, further supporting the notion of undervaluation [2]

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings estimates to maintain momentum [1]. Group 1: Stock Performance - Marcus (MCS) has shown a solid price increase of 34.6% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - The stock has also increased by 9.3% over the last four weeks, suggesting that the upward trend is still intact [2]. - MCS is currently trading at 98.7% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - MCS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that MCS may continue its price trend without reversal in the near future, and encourages exploring other stocks that meet similar criteria [4]. - It highlights the availability of over 45 Zacks Premium Screens designed to identify potential winning stocks based on various investing styles [4].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Case Study - Marcus (MCS) - Marcus (MCS) has shown significant price momentum, with a four-week price change of 7.4%, indicating growing investor interest [4] - Over the past 12 weeks, MCS stock has gained 38.5%, with a beta of 1.52, suggesting it moves 52% more than the market [5] - MCS has a Momentum Score of B, indicating a favorable time to invest, and it has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates [6][7] - The stock is currently trading at a Price-to-Sales ratio of 0.73, suggesting it is undervalued at 73 cents for each dollar of sales [7] Group 3: Additional Opportunities - Besides MCS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]