SeaWorld Entertainment (SEAS) Stock Plunging on Earnings Miss

SeaWorld Entertainment (SEAS) stock is declining following the company's 2015 third quarter earnings results.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of SeaWorld Entertainment (SEAS) - Get Report are down by 5.57% to $18.40 in pre-market trading on Thursday morning, after the theme park operator reported its financial results for the 2015 third quarter, which were below analysts' expectations for the period.

SeaWorld, known for its theme parks showcasing marine life, posted adjusted net income of $1.14 per diluted share on revenue of $496.9 million for the three month period ending September 30.

Analysts surveyed by Thomson Reuters had forecast for earnings of $1.18 per share on revenue of $509.46 million for the most recent quarter.

The company reported a 0.4% decline in attendance felt mostly at its California and Texas parks. The company attributed the decline to its continued brand challenges. Although, SeaWorld noted that its reputation campaign is addressing these issues.

SeaWorld has been under near constant scrutiny since the 2010 death of one of the company's senior killer whale trainers and a 2013 documentary highlighting its alleged mistreatment of the animals in its care.

Separately, TheStreet Ratings team rates SEAWORLD ENTERTAINMENT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate SEAWORLD ENTERTAINMENT INC (SEAS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: SEAS

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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