NEW YORK (TheStreet) -- Shares of SeaWorld Entertainment Inc. (SEAS) - Get SeaWorld Entertainment, Inc. Report are falling by 6.72% to $17.35 in pre-market trading on Wednesday, as lower attendance at the company's theme parks hurts earnings for the second quarter in a row.
SeaWorld's net income for the 2014 third quarter declined to $87.2 million, or $1 per diluted share, compared to $120.7 million, or $1.34 per diluted share for the same period in 2013.
The marine mammal entertainment company reported adjusted net income for the 2014 third quarter of $88.6 million, or $1.01 per diluted share, which fell below the expectations of analysts polled by Bloomberg of $1.13 per share.
Revenue for the most recent quarter fell to $495.8 million versus $538.4 million for the 2013 third quarter. Analysts expected $496.4 million in revenue for the quarter.
SeaWorld reported attendance of 8.4 million guests versus 8.9 million from the same quarter last year.
The company believes the decline in attendance was due to negative media attention resulting from a proposed bill in California that would ban the use of orcas in shows, and a "challenging competitive environment, particularly in Florida."
The California orca ban bill was proposed by Assemblyman Richard Bloom-D of Santa Monica, and was inspired by the 2013 documentary Blackfish.
The film alleges misconduct on the part of SeaWorld regarding the care and safety of the company's signature attraction, preforming orcas, and the trainers that work closely with the animals.
The bill is currently on hold pending further review.
Separately, TheStreet Ratings team rates SEAWORLD ENTERTAINMENT INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEAWORLD ENTERTAINMENT INC (SEAS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: SEAS Ratings Report