U.S. stocks edge higher; solid earnings season continues
Investing.com - Benchmark has reiterated its Buy rating and $25.00 price target on Marcus Corp . (NYSE:MCS), representing a 74% upside from the current price of $14.34. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $24 to $25.
Marcus Corp. exceeded consensus estimates for both revenue and adjusted EBITDA in the second quarter of fiscal year 2025, according to Benchmark’s analysis. The company’s Theatres segment delivered significant growth, driven by higher attendance and improved content availability. InvestingPro data shows the company achieved 13.7% revenue growth in the last twelve months, with a healthy gross profit margin of 41%.
The Hotels segment maintained stability despite facing headwinds related to ongoing renovations. Benchmark notes that Marcus Corp. is entering the second half of FY25 with positive momentum from a broad slate of wide-release films.
The company is also benefiting from a completed renovation cycle at a key hotel property and pricing actions that are expected to drive incremental per-capita revenue. Capital investment is projected to decline significantly in FY26, creating flexibility for capital return or expansion opportunities.
Benchmark considers Marcus Corp.’s valuation attractive, citing the combination of earnings recovery, operational leverage, and real estate-backed asset value as supporting factors for its positive outlook.
In other recent news, Marcus Corporation reported its second-quarter 2025 earnings, which exceeded analyst expectations. The company achieved an earnings per share (EPS) of $0.23, surpassing the forecasted $0.18, representing a 27.78% surprise. Revenue for the quarter was $206 million, slightly above the anticipated $200.35 million. These results indicate a positive performance for Marcus Corporation during this period. Despite the better-than-expected earnings and revenue, the company’s stock experienced a decline in pre-market trading, reflecting investor concerns over broader market conditions or potential future challenges.
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