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Cedar Fair, L.P. (FUN - Free Report) has momentum as consumers want to go to amusement parks this summer. This Zacks Rank #1 (Strong Buy) saw record net revenue through Memorial Day weekend as customers swarmed the parks.
Cedar Fair is an amusement park and resort operator which operates 13 properties including 11 amusement parks, 4 separately gated outdoor water parks and resort accommodations totaling more than 2,300 rooms and more than 600 luxury RV sites.
Headquartered in Sandusky, Ohio, Cedar Fair's parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Michigan, Texas and Toronto, Ontario.
Record Revenue Through Memorial Day Weekend
On June 2, Cedar Fair released preliminary year-to-date net revenue through Monday May 30, 2022 which jumped 21%, or $60 million, to a record $343 million compared to the same 5-month period ending Monday, June 3, 2019.
The prior two years are not legitimate comparables as revenue was hit by the coronavirus pandemic in both of those years. The real comparable is from 2019.
Those who are coming to the parks are spending, driven by a 28%, or $12.93 increase, in in-park per captial spending to a record $59.70. Out-of-park revenue also rose 13%, or $5 million, to $45 million.
Some of this good news was offset by a decline in attendance, which fell by 210,000-visits to 5.2 million guests. However, if you exclude groups, which remains soft but is showing signs of improving, year-to-date attendance was up 4%.
Guests are Booking Early and Buying Season Passes
Cedar Fair guests are also buying for the future, with strength in sales of all-season products and advanced bookings at Cedar Fair's resort properties at Cedar Point, including its renovated Castaway Bay and the soon-to-be-open Sawmill Creek Resort.
Through Memorial Day, sales of 2022 season passes were up 24%, or $56 million, compared to the similar period in 2019. All-season dining and all-season beverage, which can be added onto the season passes, jumped 46% to $20 million.
The fiscal 5-month period through Memorial Day weekend traditionally represents about 20% of the Company's full-year operating days.
A Beat in the First Quarter
On May 4, Cedar Fair reported its first quarter results and beat the Zacks Consensus by $0.40 reporting a loss of $1.56 compared to the Zacks Consensus of a loss of $1.96.
Cedar Fair usually sees a loss in the first quarter as most of its parks are closed. It represents less than 5% of the full year next revenue.
But positive trends were already showing up in the business through the spring.
Analysts Raise Full Year Estimates
After the big beat, and the bullish commentary from the company, analysts have been raising earnings estimates. 3 estimates were raised for 2022 in the last 30 days pushing up the Zacks Consensus Estimate to $4.00 from $3.52 during that time.
That's earnings growth of 734.9% as the company lost $0.63 last year as it was still being impacted by the COVID pandemic.
Shares Fall in 2022
Cedar Fair will update its results through the key Fourth of July weekend in July. But the trends are in its favor this year. Consumers want to travel and amusement parks are at the top of the list.
But shares of Cedar Fair have fallen 4.2% year-to-date despite the pace of record revenue.
Image Source: Zacks Investment Research
What gives?
Shares are cheap with a forward P/E of just 11.7 but the Street might be cautious about the entertainment and leisure companies as inflation continues to hit consumer's wallets. Will they end up staying home after all this summer as gas and food prices soar?
We'll soon see.
If you're an investor looking for a way to tap into summer fun, Cedar Fair should be at the top of your list.
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Bull of the Day: Cedar Fair (FUN)
Cedar Fair, L.P. (FUN - Free Report) has momentum as consumers want to go to amusement parks this summer. This Zacks Rank #1 (Strong Buy) saw record net revenue through Memorial Day weekend as customers swarmed the parks.
Cedar Fair is an amusement park and resort operator which operates 13 properties including 11 amusement parks, 4 separately gated outdoor water parks and resort accommodations totaling more than 2,300 rooms and more than 600 luxury RV sites.
Headquartered in Sandusky, Ohio, Cedar Fair's parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Michigan, Texas and Toronto, Ontario.
Record Revenue Through Memorial Day Weekend
On June 2, Cedar Fair released preliminary year-to-date net revenue through Monday May 30, 2022 which jumped 21%, or $60 million, to a record $343 million compared to the same 5-month period ending Monday, June 3, 2019.
The prior two years are not legitimate comparables as revenue was hit by the coronavirus pandemic in both of those years. The real comparable is from 2019.
Those who are coming to the parks are spending, driven by a 28%, or $12.93 increase, in in-park per captial spending to a record $59.70. Out-of-park revenue also rose 13%, or $5 million, to $45 million.
Some of this good news was offset by a decline in attendance, which fell by 210,000-visits to 5.2 million guests. However, if you exclude groups, which remains soft but is showing signs of improving, year-to-date attendance was up 4%.
Guests are Booking Early and Buying Season Passes
Cedar Fair guests are also buying for the future, with strength in sales of all-season products and advanced bookings at Cedar Fair's resort properties at Cedar Point, including its renovated Castaway Bay and the soon-to-be-open Sawmill Creek Resort.
Through Memorial Day, sales of 2022 season passes were up 24%, or $56 million, compared to the similar period in 2019. All-season dining and all-season beverage, which can be added onto the season passes, jumped 46% to $20 million.
The fiscal 5-month period through Memorial Day weekend traditionally represents about 20% of the Company's full-year operating days.
A Beat in the First Quarter
On May 4, Cedar Fair reported its first quarter results and beat the Zacks Consensus by $0.40 reporting a loss of $1.56 compared to the Zacks Consensus of a loss of $1.96.
Cedar Fair usually sees a loss in the first quarter as most of its parks are closed. It represents less than 5% of the full year next revenue.
But positive trends were already showing up in the business through the spring.
Analysts Raise Full Year Estimates
After the big beat, and the bullish commentary from the company, analysts have been raising earnings estimates. 3 estimates were raised for 2022 in the last 30 days pushing up the Zacks Consensus Estimate to $4.00 from $3.52 during that time.
That's earnings growth of 734.9% as the company lost $0.63 last year as it was still being impacted by the COVID pandemic.
Shares Fall in 2022
Cedar Fair will update its results through the key Fourth of July weekend in July. But the trends are in its favor this year. Consumers want to travel and amusement parks are at the top of the list.
But shares of Cedar Fair have fallen 4.2% year-to-date despite the pace of record revenue.
Image Source: Zacks Investment Research
What gives?
Shares are cheap with a forward P/E of just 11.7 but the Street might be cautious about the entertainment and leisure companies as inflation continues to hit consumer's wallets. Will they end up staying home after all this summer as gas and food prices soar?
We'll soon see.
If you're an investor looking for a way to tap into summer fun, Cedar Fair should be at the top of your list.