SeaWorld Entertainment, Inc. (NYSE:SEAS) is a theme park and entertainment company. The company has built a diversified portfolio of 11 destination and regional theme parks in its 50-year history located in key markets across U.S.
The company has been experiencing weak attendance at its parks over the past few quarters due to the negative publicity surrounding the release a documentary focused on issues pertaining to the treatment of whales in captivity.
However, SeaWorld is striving to regain customers’ confidence after it faced negative publicity associated with the treatment of captive whales and the prolonged scrutiny of its employee safety practices. In order to clear its stance, the amusement and theme park company came up with an advertising campaign stressed on its efficiency and contribution toward the protection and care of killer whales. Also on Mar 17, the company announced that it has stopped the breeding of killer whales.
Investors should also note the recent earnings estimate revisions for SEAS, as the consensus estimate has remained stable over the past 7 days. Meanwhile, SEAS’ earnings have been comparatively weak over the past few quarters. SeaWorld Entertainment has delivered negative earnings in three of the trailing four quarters making for an average negative earnings surprise of 11.37%. Meanwhile revenues have posted negative revenue surprises in two of the trailing four quarters.
Currently, SEAS has a Zacks Rank #5 (Strong Sell) but that could change following SeaWorld Entertainment’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Loss Per Share: SEAS reports narrower loss. Our consensus earnings estimate called for loss of 60 cents per share, and the company reported a loss of 56 cents per share.
Revenues: SEAS reported revenues of $220.2 million. This was 3.38% higher than our consensus estimate of $213 million.
Key Stats to Note: Attendance inched up 2.6% to approximately 3.30 million in the quarter. Adjusted EBITDA loss was $5.9 million versus an adjusted EBITDA loss of $3.8 million in the first quarter of 2015.
In-park per capita spending increased 4.5% to $25.27 in the first quarter of 2016, primarily due to culinary price increases.
SEAWORLD ENTERT (SEAS): Free Stock Analysis Report
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