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SeaWorld (SEAS) Lags Q4 Earnings, Tops Revenue Estimates

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SeaWorld Entertainment, Inc. is a Florida-based theme park and entertainment company.

Generally, the fourth and the first quarters of each year are seasonally weaker quarters for SeaWorld. Meanwhile, the company is making every possible effort to regain customers’ confidence and boost attendance. It recently unveiled a robust lineup of products that include new rides and attractions. Meanwhile, SeaWorld is increasingly focusing on its marketing strategy to highlight brand attributes and new additions.

Also, it continues to organize consumer events to drive attendance. Extended hours at SeaWorld Parks, strategic season pass promotions and more such strategies are also expected to attract customers, thereby improving attendance.

However, the California, Texas and Florida markets continue to witness a fall in attendance. Even promotional offerings have not been able to arrest the decline in traffic trends. Also, SeaWorld’s total revenue per capita has been under pressure mostly due to lower attendance, especially from Latin American and UK visitors. Additionally, costs related to marketing and reputation campaigns as well as investments in new attractions might continue to hurt profits.

Investors should note that the consensus estimate predicts loss for SEAS has been moving wider over the last 60 days. Moreover, SEAS has mostly a negative record of earnings surprises in recent quarters. The company posted negative earnings surprise in three of the last four quarters.

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 statistics from this just-revealed announcement below:

Earnings: SEAS reported wider-than-expected loss. Our consensus estimate predicted loss of 18 cents, and the company reported loss of 24 cents per share.

Revenues: SEAS reported revenues of $265.5 million. This surpassed our consensus estimate of $260.7 million.

Key Stats to Note: In fourth-quarter 2017, attendance was down 2.7% year over year, total revenue per capita was up 2% from the prior-year quarter.

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

SeaWorld Entertainment, Inc. Price and EPS Surprise

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