SeaWorld (SEAS) Lags Q3 Earnings & Revenue Estimates
SeaWorld Entertainment, Inc. SEAS is a Florida-based theme park and entertainment company.
Generally, the second and the third quarters of each year are seasonally strong 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, 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 the 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 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. Revenues posted positive surprises in just one 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 #4 (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:
Earnings: SEAS misses on earnings. Our consensus earnings estimate called for earnings per share of 78 cents, and the company reported earnings of 64 cents per share.
Revenues: SEAS reported revenues of $437.7 million. This lagged our consensus estimate of $455.7 million.
Key Stats to Note: In third-quarter 2017, admissions and food, merchandise and other revenues fell 10.1% and 9.4%, respectively.
Stock Price Impact: In-active in pre-market trading.
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