SeaWorld Entertainment's (SEAS) CEO Joel Manby, during the 2016 third-quarter earnings call, attributed the company's depressed revenue and earnings on weather, wage and labor hikes and a decreasing wave of foreign tourism into Orlando, particularly from Latin America.
Before Tuesday's market open, Orlando-based SeaWorld reported third-quarter earnings of 77 cents per diluted share on $485.3 million in revenue, compared year-over-year to earnings of $1.14 per diluted share on revenue of $497 million.
Analysts surveyed by FactSet were looking for earnings of $1.06 per share on revenue of $486 million.
SeaWorld lowered its guidance for 2016 adjusted earnings before interest, taxes, depreciation and amortization to $310 million to $330 million from $310 million to $340 million. Its stock rose nearly 5% to $14.96 in recent trading.
A major event that negatively impacted revenue at SeaWorld's Orlando park in the third quarter was Hurricane Matthew, which shut down operations for a few days when the October hurricane hit the country's east coast, Manby said early Tuesday morning in the call.
The company's Virginia park, Busch Gardens Williamsburg, was shut down for one day due to the hurricane, which devastated parts of Haiti and killed 546 people. Hurricane Matthew cost SeaWorld $4 million, according to Manby.
"We know where we got hit," Manby said. "We know where we got punched and we know exactly where we need to address it."
Although tourism continues to decline due to various global concerns such as the threat of terrorism, Manby said he expects to see positive trends in September and October at the company's California and Texas parks.