Cinemark(US:CNK) ZACKS·2024-07-26 15:06Core Insights - The article discusses the importance of estimate revisions ahead of earnings releases, highlighting the Zacks Earnings ESP model as a tool for predicting earnings surprises [1][7]. Group 1: Company Earnings Expectations - Marcus (MCS) is expected to report earnings per share (EPS) of $0.03 for the quarter ended June 2024, indicating a year-over-year decline of 91.4% [2]. - Cinemark is projected to post quarterly earnings of $0.07 per share, also reflecting a year-over-year change of -91.3% [3]. - Revenues for Cinemark are anticipated to be $685.45 million, down 27.3% from the previous year [5]. - The consensus EPS estimate for Marcus has been revised 9.7% upward over the last 30 days, but it currently has an Earnings ESP of 0.00% [12]. Group 2: Earnings Surprise Predictions - Cinemark's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +12.50%, suggesting a likelihood of beating the consensus EPS estimate [16][21]. - Over the last four quarters, Cinemark has consistently beaten consensus EPS estimates [22]. - Conversely, Marcus has a Zacks Rank of 4 (Sell), making it challenging to predict an earnings beat, with only two out of the last four quarters surpassing consensus EPS estimates [24]. Group 3: Market Reactions and Analyst Insights - The article emphasizes that the actual results compared to estimates will significantly influence Cinemark's near-term stock price [13]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a solid Zacks Rank [29]. - The market's reaction to earnings reports can be influenced by various factors beyond just the earnings beat or miss [26].