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What Should You Expect from SeaWorld (SEAS) in Q1 Earnings?
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SeaWorld Entertainment, Inc. is set to report first-quarter 2017 results on May 9, before the market opens.
Last quarter, SeaWorld’s loss was wider than the Zacks Consensus Estimate by 7.69%. In fact, this Florida-based theme park and entertainment company missed estimates in three of the last four quarters with an average miss of 9.27%.
SeaWorld Entertainment, Inc. Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors to Consider
SeaWorld’s total revenue per capita has been under pressure mostly due to lower attendance, especially from Latin American visitors. In fact, negative publicity associated with captive whales and prolonged scrutiny of employee safety practices might continue to hurt revenues in the to-be-reported quarter as well.
Although the California and Texas markets improved in the fourth quarter, Florida markets continued to witness a decrease in attendance. Even promotional offerings have not been able to arrest the decline in traffic trends. Additionally, costs related to marketing and reputation campaigns could eat into profits in the first quarter. Moreover, the company expects the calendar shift of Easter from the first quarter to the second quarter in 2017 to have an impact on its profitability.
Though the company’s move of stopping the breeding of killer whales has aided in salvaging its reputation among activists and received positive feedbacks, it is likely to affect the company’s revenues, especially from international visitors.
Nevertheless, SeaWorld is making every possible effort to regain customers’ confidence. Evidently, the company continues to organize consumer events to drive attendance. Also, management is undertaking new initiatives to stabilize and deliver improved results in California, Texas and Florida markets. Notably, capital investments in new rides and attractions, extended hours at SeaWorld Parks, strategic season pass promotions and more such strategies should offset the negatives to some extent and attract customers, thereby improving attendance.
Meanwhile, we are optimistic about the company’s sincere efforts to control costs without harming efficiency, which should help in improving margins in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show earnings beat for SeaWorld this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here, as you will see below.
Zacks ESP: SeaWorld has an Earnings ESP of +9.43%. This is because the Most Accurate estimate is a loss of 48 cents per share, while the Zacks Consensus Estimate is pegged at a loss of 53 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SeaWorld has a Zacks Rank #5 (Strong Sell).
As it is we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Stocks to Consider
Here are some companies in the consumer discretionary sector to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Norwegian Cruise Line Holdings, Inc. (NCLH - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3.
Tribune Media Company has an Earnings ESP of +28.57% and a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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What Should You Expect from SeaWorld (SEAS) in Q1 Earnings?
SeaWorld Entertainment, Inc. is set to report first-quarter 2017 results on May 9, before the market opens.
Last quarter, SeaWorld’s loss was wider than the Zacks Consensus Estimate by 7.69%. In fact, this Florida-based theme park and entertainment company missed estimates in three of the last four quarters with an average miss of 9.27%.
SeaWorld Entertainment, Inc. Price and EPS Surprise
SeaWorld Entertainment, Inc. Price and EPS Surprise | SeaWorld Entertainment, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
SeaWorld’s total revenue per capita has been under pressure mostly due to lower attendance, especially from Latin American visitors. In fact, negative publicity associated with captive whales and prolonged scrutiny of employee safety practices might continue to hurt revenues in the to-be-reported quarter as well.
Although the California and Texas markets improved in the fourth quarter, Florida markets continued to witness a decrease in attendance. Even promotional offerings have not been able to arrest the decline in traffic trends. Additionally, costs related to marketing and reputation campaigns could eat into profits in the first quarter. Moreover, the company expects the calendar shift of Easter from the first quarter to the second quarter in 2017 to have an impact on its profitability.
Though the company’s move of stopping the breeding of killer whales has aided in salvaging its reputation among activists and received positive feedbacks, it is likely to affect the company’s revenues, especially from international visitors.
Nevertheless, SeaWorld is making every possible effort to regain customers’ confidence. Evidently, the company continues to organize consumer events to drive attendance. Also, management is undertaking new initiatives to stabilize and deliver improved results in California, Texas and Florida markets. Notably, capital investments in new rides and attractions, extended hours at SeaWorld Parks, strategic season pass promotions and more such strategies should offset the negatives to some extent and attract customers, thereby improving attendance.
Meanwhile, we are optimistic about the company’s sincere efforts to control costs without harming efficiency, which should help in improving margins in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show earnings beat for SeaWorld this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here, as you will see below.
Zacks ESP: SeaWorld has an Earnings ESP of +9.43%. This is because the Most Accurate estimate is a loss of 48 cents per share, while the Zacks Consensus Estimate is pegged at a loss of 53 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SeaWorld has a Zacks Rank #5 (Strong Sell).
As it is we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Stocks to Consider
Here are some companies in the consumer discretionary sector to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Nexstar Media Group, Inc. (NXST - Free Report) has an Earnings ESP of +29.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Norwegian Cruise Line Holdings, Inc. (NCLH - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3.
Tribune Media Company has an Earnings ESP of +28.57% and a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>