Marcus (NYSE:MCS) Posts Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Marcus (NYSE:MCS) reported quarterly earnings of $0.23 per share, exceeding expectations by $0.04, with revenue of $206.04 million against an estimated $192.79 million.
• Despite beating earnings expectations, Marcus stock fell 8.8% following the announcement, opening at $14.93.
• The company declared a quarterly dividend of $0.07 per share, yielding 1.9%, but has a negative dividend payout ratio of -66.67%.

Marcus (NYSE:MCS - Get Free Report) posted its quarterly earnings data on Friday. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.04, Zacks reports. Marcus had a net margin of 1.91% and a return on equity of 4.28%. The firm had revenue of $206.04 million for the quarter, compared to analysts' expectations of $192.79 million.

Marcus Stock Performance

Shares of NYSE:MCS traded down $0.59 on Tuesday, hitting $14.20. 87,442 shares of the company were exchanged, compared to its average volume of 200,103. The firm has a market capitalization of $444.56 million, a price-to-earnings ratio of 31.45, a PEG ratio of 2.46 and a beta of 1.24. The company's 50 day moving average price is $17.26 and its two-hundred day moving average price is $17.71. Marcus has a one year low of $12.47 and a one year high of $23.16. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.42 and a current ratio of 0.42.

Marcus Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Tuesday, May 27th were issued a dividend of $0.07 per share. The ex-dividend date was Tuesday, May 27th. This represents a $0.28 annualized dividend and a dividend yield of 2.0%. Marcus's payout ratio is presently 62.22%.

Institutional Trading of Marcus

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Marcus by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,849 shares of the company's stock valued at $231,000 after buying an additional 624 shares during the period. Empowered Funds LLC raised its holdings in Marcus by 2.1% in the first quarter. Empowered Funds LLC now owns 172,745 shares of the company's stock worth $2,883,000 after purchasing an additional 3,562 shares during the period. Finally, Millennium Management LLC raised its holdings in Marcus by 11.1% in the first quarter. Millennium Management LLC now owns 392,634 shares of the company's stock worth $6,553,000 after purchasing an additional 39,118 shares during the period. Institutional investors own 81.57% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on MCS shares. Wall Street Zen cut shares of Marcus from a "buy" rating to a "hold" rating in a research report on Thursday, May 15th. Wedbush began coverage on shares of Marcus in a research note on Friday, July 18th. They set an "outperform" rating and a $24.00 target price for the company. Barrington Research reissued an "outperform" rating and set a $25.00 target price on shares of Marcus in a research note on Monday. Benchmark reissued a "buy" rating and set a $25.00 target price on shares of Marcus in a research note on Friday, April 11th. Finally, B. Riley began coverage on shares of Marcus in a research note on Friday, May 16th. They set a "buy" rating and a $24.00 target price for the company. One equities research analyst has rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Marcus has a consensus rating of "Buy" and an average price target of $24.50.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names.