Why ClubCorp Holdings Inc(NYSE: MYCC) is crashing this morning

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ClubCorp Holdings Inc(NYSE: MYCC) has reported the adjusted loss per share of 12 cents in the first quarter of FY 17  , missing the analysts’ estimates for the adjusted loss per share of 8 cents. As a result, the stock lost over 12.2% on April 12th, 2017 (as of  10:53AM EDT on April 12th, 2017; Source: Google finance)

The company had reported the adjusted revenue growth of 3 percent to $221.3 million in the first quarter of FY 17. The Same Store Combined Clubs revenue has increased $5.5 million to $217.1 million, up 2.6%, due to an increase in all three major revenue streams, dues up 2.8%, food & beverage up 2.0% and golf operations up 4.7%.

Moreover, the net loss has decreased 9.7 percent to $7.5 million and the adjusted EBITDA has increased 4.2% to $43.7 million, due to the increased revenue and from effective management of variable operating expenses.

ClubCorp Holdings expects the 2017 full-year revenue to be in the range of $1.1 billion to $1.14 billion and the adjusted EBITDA in the range of $255 to $265 million.

Meanwhile, ClubCorp Holdings has acquired Oakhurst Golf & Country Club, a premier private club in Clarkston, Michigan, just northwest of Detroit. This is the company’s fourth acquisition in 2017. ClubCorp Holdings has planned to spend more than $1 million to reinvent the club, bringing stylish and new dining and social features to the clubhouse and patio, plus improvements to the golf course and aquatics center. Additional clubs in the area include Oak Pointe Country Club in Brighton, TPC Michigan in Dearborn and the Skyline Club in Southfield. In addition, as of March 21st, 2017, ClubCorp Holdings has acquired three clubs including Eagle’s Nest Country Club in Phoenix, Maryland (part of the greater Baltimore MSA), North Hills Country Club in Glenside, Pennsylvania (part of the greater Philadelphia MSA) and Norbeck Country Club in Rockville, Maryland.

On the other hand, ClubCorp Holdings has said that it would not explore strategic alternatives at this time. ClubCorp Holdings in January had said it was exploring strategic alternatives and the company was in the process of selling itself. Further, the company’s Chief Executive Eric Affeldt would step down from his role upon the appointment of a successor.

ClubCorp Holdings stock has risen 27.27% in the last one year (source: Google Finance). According to tipranks.com, 4 analysts has covered the stock while recommend a “Strong Buy”. ClubCorp Holdings has an average price target of $22.33, which is a further upside of 44.53%.

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