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SeaWorld's (SEAS) Q3 Earnings Meet, Revenues Beat, Down Y/Y

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SeaWorld Entertainment, Inc. reported third-quarter 2023 results, with earnings meeting the Zacks Consensus Estimate and revenues topping the same. On the other hand, both metrics declined on a year-over-year basis.

The company’s results were affected by adverse weather impacts during its peak operating season across most of its markets, reflecting lower attendance of guests. That said, the company intends to focus on its strategic growth initiatives related to hotels, international expansion and digital activities accompanied by increasing its in-park product offerings and cost management plans. These initiatives are quite likely to aid it in growing its revenues and profitability in the upcoming period.

Following the results, shares of this theme park and entertainment company declined 1.6% during the trading session on Nov 8.

Inside the Headlines

SeaWorld reported adjusted earnings of $1.92 per share, which met the Zacks Consensus Estimate. In the prior-year quarter, the company reported adjusted earnings per share of $1.99.

SeaWorld Entertainment, Inc. Price, Consensus and EPS Surprise


SeaWorld Entertainment, Inc. Price, Consensus and EPS Surprise

SeaWorld Entertainment, Inc. price-consensus-eps-surprise-chart | SeaWorld Entertainment, Inc. Quote


Total revenues of $548.2 million surpassed the consensus estimate of $547.8 million by 0.1%. However, the metric decreased 3% year over year.

Quarterly Highlights

In the third quarter of 2023, admission revenues declined 4.4% to $299.8 million from the prior-year reported value of $313.6 million. The food, merchandise and other revenues also decreased 1.3% year over year to $248.5 million.

In the reported quarter, SeaWorld’s total revenue per capita declined 0.2% to $76.9 year over year thanks to a 1.6% decline in admission per capita to $42.1 compared with the prior year.

Operating Highlights

During the third quarter, the selling, general and administrative expenses of SeaWorld were $59.7 million, up 12.5% year over year. Yet, the total costs and expenses of the company declined 0.7% to $345 million year over year.

The company’s adjusted EBITDA in the reported quarter was $266.4 million, down from $274.2 million reported in the prior-year quarter. Adjusted EBITDA margin expanded 10 basis points to 48.6% year over year.

Financial Details

As of Sep 30, 2023, SeaWorld recorded cash and cash equivalents of $215.2 million compared with $79.2 million reported at 2022 end. Long-term debt (including current maturities) as of the end of third-quarter 2023 was $2,128.5 million, down from $2,137.5 million reported at 2022 end.

Net cash provided by operating activities was $398.5 million in the first nine months of 2023 compared with $468.9 million in the comparable year-ago period.

Zacks Rank

SeaWorld currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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