SeaWorld Entertainment Inc (SEAS) - Get SeaWorld Entertainment, Inc. Report stock is down almost 8% Tuesday afternoon after the Florida-based company reported a second quarter loss of $175.9 million, missing FactSet analyst expectations of a $26.6 million gain.
SeaWorld reported a loss of $2.05 per share, falling short of the FactSet analyst consensus of 33 cents earned per share.
SeaWorld recorded $373.8 million in revenue, missing analysts' expectation of $394.8 million. Attendance at its three parks was up by 138,000 in the second quarter, but the increase was offset by a decline in guests from the area outside a 300-mile radius of any park. Attendance during the first half of 2017 dropped by 353,000 year-over-year.
Looking forward, SeaWorld said on their earnings call Tuesday morning that there's a possibility that the company could receive a credit downgrade from rating agencies.
"We clearly still have an ongoing revenue issue at two of our SeaWorld parks - San Diego and Orlando," CEO Joel Manby said. But the company thinks the third quarter - which is its biggest of the year - could benefit from the company's recent repositioning to a "purpose-driven brand" that is "fun and meaningful" instead of an animal-driven. The company warned it's at risk for a credit downgrade.
SeaWorld announced last year that its current generation of orcas will be the last it breeds and keeps in captivity. The decision followed public backlash after 2013 documentary "Blackfish" shed light on the life orcas live in captivity.
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