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Tale of the Tape

Zacks Equity Research

SeaWorld (SEAS) Lags Q3 Earnings, Tops Revenue Estimates
November 08, 2016

SEAS

Trades from $3

SeaWorld Entertainment, Inc. (SEAS - Free Report) is a Florida-based theme park and entertainment company.

SeaWorld has been witnessing a decline in total revenue per capita mostly due to lower attendance. Negative publicity associated with captive whales and prolonged scrutiny of employee safety practices has hurt revenues in the recent past.  Even promotional offerings have not been able to arrest the decline in traffic trends. Also, costs related to marketing and reputation campaigns continue to hurt profits.

Nevertheless, SeaWorld Entertainment is making every possible effort to regain customer confidence. The company continues to organize consumer events to drive attendance. Moreover, management is undertaking new initiatives to stabilize and deliver improved results in California, Texas and Florida markets. Capital investments in new rides and attractions, extended hours at SeaWorld Parks and more such strategies should offset the negatives to some extent and attract customers, thereby improving attendance.

Investors should note that the consensus estimate for SEAS has been moving downwards over the last 60 days. Moreover, SEAS’ has mostly negative record of earnings surprises in recent quarters. In fact, the company posted negative earnings surprise in three of the last four quarters, with an average miss of 3.65%. Revenues also posted positive surprises in just one of the trailing four quarters.

SEAWORLD ENTERT Price and EPS Surprise

 

SEAWORLD ENTERT Price and EPS Surprise | SEAWORLD ENTERT Quote

SEAS currently has a Zacks Rank #3 (Hold) but that could change following SeaWorld’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: SEAS lags on earnings. Our consensus earnings estimate called for earnings per share of $1.06, and the company reported earnings of 77 cents per share. Investors should note that these figures take out stock option expenses.

Revenues: SEAS reported revenues of $485.3 million. This surpassed our consensus estimate of $483 million.

Key Stats to Note: During the third-quarter 2016, Admissions revenues declined 3.3% and Food, merchandise and other revenues fell 0.8%.

Stock Price Impact: In-active in pre-market trading.

Check back later for our full write up on this SEAS earnings report!

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