Six Flags (SIX) Stock Down on Q2 Earnings Miss

Six Flags (SIX) reported 2016 second quarter earnings this morning, missing analysts’ estimates.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Six Flags (SIX) - Get Report  are dropping 4.96% to $56.51 on high volume trading after the company posted 2016 second quarter results that were worse than expected.

Almost 2.2 million shares have been traded so far today vs. the stock's average of roughly 879,000 per day.

The Grand Prairie, TX-based regional theme park company generated earnings of 64 cents per share for the 2016 second quarter, lower than estimates of 70 cents per share.

Six Flags posted revenue of $407 million for the period, which was higher than estimates of $406.4 million. The company said its attendance for the quarter has grown by 2% to approximately 9 million guests.

In mid-June Six Flags announced that it had completed a private sale of $300 million of senior notes and that it would implement a stock repurchase plan, allowing the company to repurchase an incremental $500 million of its common stock.

"We are well-positioned for 2016 and we remain laser-focused on our aspirational target of $600 million of Modified EBITDA by 2017," said CEO John Duffey in a company statement.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, TheStreet Ratings finds weaknesses including weak operating cash flow and poor profit margins.

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

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