Six Flags Entertainment Corp. (SIX) plunged more than 15% on Thursday after the company reported mixed fourth-quarter and full-year results.
The amusement park company beat on earnings, bringing in 93 cents per share, well above Zacks Consensus Estimate of 28 cents, but revenue missed expectations despite coming in at a record $270 million for the fourth quarter. Analysts surveyed by FactSet expected revenue of $284.5 million.
Fourth-quarter revenue was driven by a 6% increase in guest spending per capita and 3% rise in attendance, but the company said a "challenging macroeconomic environment" in China capped growth.
"This growth was offset by an unfavorable revenue adjustment of $15 million related to the company's international agreements due to delays in the expected opening dates of some of the parks in China caused by a challenging macroeconomic environment," the company said in a press release. The current macro environment resulted in a 38% decline in sponsorship, international agreements and accommodations revenue compared to the fourth quarter of 2017, the company said.
For the full year, Six Flags raked in revenue of $1.5 billion, making 2018 the ninth consecutive record year of revenue growth. Full-year net income was $3.23 a share, up from 2017.
The company said full-year revenue growth was driven by a 5% increase in attendance and a 2% increase in guest spending per capita due to a 4% increase in admissions products pricing per capita.
"Our exceptional operating performance in the fourth quarter demonstrates the strength of our pricing power, membership strategy, and in-park spending programs, all of which, together with our domestic and international park expansion initiatives, will provide a strong platform for growth for many years to come," said Six Flags Chairman, President and CEO Jim Reid-Anderson in a statement.
Six Flags was down 15.7% on Thursday at $53.13.