SeaWorld (SEAS) Slammed on Weak Q2, Outlook

Shares of SeaWorld Entertainment (NYSE: SEAS) are down 25% following weak Q2 results and guidance.

Seaworld reported Q2 EPS of $0.43, $0.16 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $405.2 million versus the consensus estimate of $445.29 million. For the full year of 2014, the Company now expects full year 2014 revenue and Adjusted EBITDA to be down in the range of 6-7% and 14-16%, respectively, compared to the prior year.

Attendance was up 0.3% from last year due to a shift in the timing of Easter into the second quarter in 2014 along with favorable weather compared to the same quarter in 2013. This increase was offset by lower attendance at the Company's destination parks due to a combination of factors, including 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 one of the Company's new attractions. In addition, 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.

In an attempt to offset the disappointment, SeaWorld announced that its Board of Directors has authorized the repurchase of up to $250 million of its common stock beginning on January 1, 2015. However, the announcement is doing little.

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