SeaWorld (SEAS) Admits Impact from Animal Activism For First Time, FBR Capital Notes
- Top 10 News for 12/15 - 12/19: Russia Raises Rates, Ruble Retreats; U.S., Cuba Get Friendly; Sony Crumbles Under Pressure
- BlackBerry (BBRY) Posts Surprise Q3 Profit; Reports 100% Sequential Growth in BES10 Licenses
- Facebook's (FB) Instagram is Bigger and Better than Twitter (TWTR), Should Be Worth $35 Billion - Citi
- Nike (NKE) Tops Q2 EPS by 4c; Adjusted Futures Orders Rose 11%
- Fed's Williams Says June Good Time to Consider 'Lift-Off'
FBR Capital analyst Barton Crockett weighed in on SeaWorld Entertainment (NYSE: SEAS) which is down 29% following weak Q2 results and outlook. The analyst noted that the results featured the company's first acknowledgement of attendance pressures tied to animal activism.
Crockett notes total revenue of $405.2 million, was down 1.5% year-over-year, and missed their $442.5 million estimate for up 7.6% and FactSet consensus of $447.9 million. The attendance increase of 0.3% fell short of the firm's 4.3% estimate. Total revenue per cap fell 1.8% to $61.54, below their forecast for up 3.2%, with admission revenue per capita down 2.5%, versus our estimate for up 3.6%, and FM&O revenue per capita flat, versus their estimate for a 2.5% increase. Adj. EBITDA was $126.1 million, down 0.7% year-over-year, below our $142.4 million estimate, or up 12.1%, and FactSet consensus of $149.2 million. Adj. EPS was $0.41 versus their $0.56 and FactSet consensus of $0.60.
SeaWorld now sees full-year revenue down 6%-7% year-over-year and adj. EBITDA down 14%-16% year-over-year, versus previous guidance for up 2%-4% and up 3%-6%, respectively.
The analyst noted that SeaWorld attributed soft attendance to "a late start to summer for some schools in the company's key source markets, new attraction offerings at competitor destination parks, and a delay in the opening" of Falcon's Fury, the main new attraction at Busch Garden at Tampa, FL. Additionally, for the first time ever, the company acknowledged attendance pressure tied to animal activism, saying "the company believes attendance in the quarter was impacted by demand pressures related to recent media attention surrounding proposed legislation in the state of California."
The firm maintained a Market Perform rating and price target of $37.00.
Shares of SeaWorld Entertainment closed at $28.15 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: SunTrust Downgrades Walgreen (WAG) to Neutral
- Barrington Research Starts Ambarella (AMBA) at Outperform
- Worthington Industries (WOR) PT, Estimates Cut at Jefferies Amid Mixed Q2
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!