SeaWorld stock plummets as attendance drops

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SeaWorld Killer Whales

Photo: Don Bartletti / Los Angeles Times

SAN DIEGO – SeaWorld Entertainment Inc. said its earnings fell 84% in its quarter ended in June–traditionally one of its strongest–as attendance dropped following record Texas rainfall and continued challenges in California.

“Our attendance for the second quarter declined due to the timing of Easter, record levels of rainfall in Texas and continued brand challenges in California. These factors were partially offset by improved demand in our other park locations, including Florida,” Chief Executive Joel Manby said. The company said it would have two new coaster additions for 2016 and is focused on resolving its “brand challenges” in California.

SeaWorld Entertainment Inc. shares SEAS, -1.58% fell 5% in premarket trade, after the company reported weaker-than-expected profit and revenue for the second quarter.

The theme park operator said net income was at $5.8 million, or 7 cents a share. T his is down down from $37.4 million, or 43 cents a share, in the previous year. Adjusted per-share earnings came to 22 cents, which is well below the FactSet consensus of 40 cents.

SeaWorld’s Revenue fell to $391.6 million from $405.2 million, compared with a FactSet consensus of $397 million. Attendance fell to 6.478 million from 6.584 million.

The company has struggled since the release of the “Blackfish” documentary that alleged cruelty in holding Orcas in captivity. SeaWorld has worked to overcome the fallout with a new television ad campaign.

“Early feedback on our campaign has been positive, however, we recognize that fully resolving our brand challenges in California will require sustained focus and commitment to correct misinformation,” Chief Executive Joel Manby said in a statement. Shares are down about 19% in the last three months, while the S&P 500 has gained 1%.

You can read this article in its entirety on Market Watch.

7 comments

  • RonaldBWing

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  • County and city behaving stupidly amidst this.

    In spite of all the benefits SeaWorld provides the County and City chase after the crazy fickle chicken football team while stonewalling permission to improve living conditions for the orcas at SeaWorld. Shame on the County and Shame on the City SHAME!

    • nettt0

      $eaWorld is becoming more of a liability to the city, than a benefit. People realize Orcas do not belong in swimming pools, even an ‘upgraded’ 10 million gallon swimming pool.

  • RamonaRealist

    Attendance dropped less than 2%, not exactly devastating, and easily explained by the weather, etc., as outlined by the spokesperson – all the other numbers are just being used by the author to imply a calamity which doesn’t exist. Why do ‘news’ organizatons need to falsely magnify problems these days? Because news is now for PROFIT – unlike the glory days of responsible news past – and only bad news sells… Seaworld has had a speed bump, that’s it.

    • nettt0

      The article factually focuses on $eaWorld’s drop in profit and stock price, along with the reasons/excuses behind them as stated by the spokesperson. Tilikum personally apologizes for the poor performance of your retirement portfolio. Too bad you can’t buy stock in Ringling Brothers (Feld Entertainment)

  • nettt0

    If the documentary Blackfish was untrue, why didn’t $eaWorld sue? Could it be that a trial might risk exposing worse atrocities committed by $eaWorld than what was revealed in the Blackfish documentary?

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