SeaWorld Entertainment, Inc. (SEAS) is a theme park and entertainment company. The company announced the appointment of a new CEO Joel Manby, earlier this year.
Despite promotional offerings, the company has been experiencing relatively weak attendance at its parks over the past few quarters (with an exception in the prior quarter, wherein attendance increased year-over year). The negative publicity surrounding the release of Blackfish, a documentary aired by CNN in 2013 has been lowering the attendance. The documentary focused on issues pertaining to the treatment of whales in captivity.
Investors should also note the recent earnings estimate revisions for SEAS, as the consensus estimate has been mostly stable. 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 19.22%. However, revenues have beat estimates in three of the trailing four quarters.
Currently, SEAS has a Zacks Rank #2 (Buy) 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: SEAS misses on earnings. Our consensus earnings estimate called for EPS of 40 cents share, and the company reported EPS of 22 cents. Investors should note that these figures take out stock option expenses.
Revenues: SEAS reported revenues of $391.6 billion. This beat our consensus estimate of $397 million.
Key Stats to Note: Attendance declined 1.6% to 6.5 million in the quarter, mainly due to the timing of Easter, excessive rainfall in Texas and brand challenges in California, partially offset by higher demand at the company's Florida locations. In-park per capita spending remained relatively stable year over year at $23.64.
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