RCI Hospitality Holdings, Inc. RICK unveiled insights into its performance during the second quarter of fiscal year 2024. The official results are slated for release by May 9, 2024. However, the disclosure did not sit well with investors as the stock witnessed a dip of 3.2% in the after-hours trading following the announcement on Apr 9.
Challenges in Revenues
In the fiscal second quarter, RICK posted total revenues of $71.7 million, marking a modest 1.3% increase compared to the previous year. However, same-store sales saw a worrisome decline of 8.6% year over year.
Sales from Nightclubs amounted to $59 million, indicating a 4.2% uptick from the previous year. Notably, the quarter witnessed an additional $7.4 million in sales due to acquisitions that were not part of comparable sales.
On the other hand, Bombshells reported revenues of $12.8 million in this quarter, showcasing a significant decrease of 10.4%, equivalent to $1.5 million. While there was some relief from non-comparable sales including locations like Cherry Creek Food Hall in Greenwood Village (CO) featuring Bombshells Kitchen, Bombshells San Antonio (TX), and Bombshells Stafford (TX) – contributing an extra $1.2 million, same-store sales plummeted by 20.5% or $2.7 million.
Over the past three months, the company’s shares have nosedived by 12.5%, overshadowed by the industry’s robust 4.6% growth.
Image Source: Zacks Investment Research
The Zacks Rank & Top Picks
Presently, RCI Hospitality is grappling with a Zacks Rank #4 (Sell).
However, there are some standout performers in the Zacks Consumer Discretionary sector, such as:
Royal Caribbean Cruises Ltd. RCL stands out with a Zacks Rank #1 (Strong Buy). RCL boasts an impressive track record of a 26.4% average earnings surprise over the last four quarters. Notably, the company’s shares have surged by a remarkable 121.8% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) forecast a rise of 14.7% and 47.9%, respectively, from a year ago.
Meanwhile, Trip.com Group Limited TCOM flaunts a Zacks Rank #2 (Buy) and has delivered a stellar 53.1% average earnings surprise over the past four quarters. TCOM’s shares have witnessed a gain of 29.2% in the last year.
The consensus estimates for TCOM’s 2024 sales and EPS predict an increase of 18.2% and 1.8%, respectively, compared to the previous year.
Hyatt Hotels Corporation H holds a Zacks Rank #2 and boasts a solid 17.8% average earnings surprise over the trailing four quarters. H’s shares have surged by 44.2% in the past year.
Furthermore, the Zacks Consensus Estimate for H’s 2024 sales and EPS projects a rise of 3.5% and 25%, respectively, compared to the previous year.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has recently published a Special Report aimed at helping investors capitalize on substantial profits from the pioneering decentralized form of currency, Bitcoin.
While there are no certainties for the future, historical data reveals that Bitcoin boasted returns of +272.4% in 2012, +161.1% in 2016, and +302.8% in 2020, during the last three presidential election years.
Zacks anticipates another noteworthy surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
