SeaWorld Entertainment (SEAS) Stock Retreating as Loss Widens
NEW YORK (TheStreet) -- Shares of SeaWorld Entertainment (SEAS) - Get Report are down by 7.7% to $17.97 in pre-market trading on Thursday morning, after the theme park company issued its 2016 first quarter financial results.
The company's net loss widened year over year as expenses grew and attendance at the company's Orlando-based theme park declined.
SeaWorld, a company showcasing various marine life for entertainment purposes, posted a net loss of $84 million, compared to a loss of $43.6 million for the 2015 first quarter.
On a per share basis the loss was $1 vs. a loss of 51 cents for the year ago period.
The company's total revenue grew to $220.2 million from $214.6 million in the 2015 first quarter.
The growth in revenue was driven by higher attendance at the company's Virginia, Texas and California locations. However the attendance gains at these locations were offset by a drop at the Florida park.
This was the result of "a decline in international attendance from Latin America, and a decline in passholder attendance at our SeaWorld Orlando park, resulting from fewer season pass sales due to less discounting on season pass products. We expect these issues will continue to impact the remainder of the year," CEO Joel Manby said.
SeaWorld recently announced plans to end the breeding of the killer whales at its parks. The company will also move away from the theatrical style shows it features and showcase more natural behaviors observed in wild killer whales.
The decisions follow three years of harsh criticism from the public regrading SeaWorld's treatment of the animals in its care, after the release of a documentary on the company.
Separately, TheStreet Ratings has set a "hold" rating and a score of C on SeaWorld Entertainment stock. The primary factors that have impacted the 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 increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.
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.
You can view the full analysis from the report here: SEAS
