SeaWorld Entertainment, Inc. (SEAS) is a theme park and entertainment company. The company recently announced the step down of its CEO Jim Atchison which was followed by job cuts.
Despite promotional offerings, the company has been experiencing weak attendance at its parks over the past few quarters. The negative publicity surrounding the release of Blackfish, a documentary aired by CNN in 2013 has lowered guests’ attendance. The documentary focused on issues pertaining to the treatment of whales in captivity. It also highlighted the death of a trainer at one of the company’s parks.
Investors should also note the recent earnings estimate revisions for SEAS, as the consensus estimate has been mostly moving downwards. Moreover, SEAS’ earnings have been comparatively weak over the past few quarters. SeaWorld Entertainment has delivered negative earnings in three of the trailing four quarters making for an average negative earnings surprise of 9.84%. Meanwhile revenues have posted negative revenue surprises in two of the trailing four quarters while remaining positive in the other two.
Currently, SEAS has a Zacks Rank #3 (Hold) but that could change following SeaWorld Entertainment’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: The company reported a loss of 21 cents per share wider than the consensus estimate of a loss of 14 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: SEAS reported revenues of $264.5 billion. This beat our consensus estimate of $254.0 million.
Key Stats to Note: Attendance declined 2.2% to 4.4 million in the quarter. Adjusted EBITDA increased 7% year over year to $49.9 million. In-park per capita spending increased 2.0% to $22.51.
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