SeaWorld (SEAS) Q1 Loss Wider Than Expected, Sales Miss
SeaWorld Entertainment, Inc. SEAS is a Florida-based theme park and entertainment company.
SeaWorld’s total revenue per capita has been under pressure 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, strategic season pass promotions and more such strategies have been offsetting the negatives to some extent and attracting customers, thereby improving attendance.
Investors should note that the consensus estimate for SEAS has hardly witnessed any significant movement over the last 60 days. Meanwhile, 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 9.27%. Revenues posted positive surprises in two of the trailing four quarters.
SeaWorld Entertainment, Inc. Price and EPS Surprise
SeaWorld Entertainment, Inc. Price and EPS Surprise | SeaWorld Entertainment, Inc. Quote
SEAS currently has a Zacks Rank #5 (Strong Sell) 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:
Wider-Than-Expected Loss: SEAS reported first-quarter 2017 adjusted loss of 66 cents per share, wider than our consensus estimate of a loss of 53 cents per share.
Revenues: SEAS reported revenues of $186.4 million. This lagged our consensus estimate of $207 million.
Key Stats to Note: During the first-quarter 2017, Admissions revenues declined 16% while Food, merchandise and other revenues decreased 14.5%.
Stock Price Impact: In-active in pre-market trading.
Check back later for our full write up on this SEAS earnings report!
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SeaWorld Entertainment, Inc. (SEAS): Free Stock Analysis Report
To read this article on Zacks.com click here.
