Seaworld shares slide as earnings fall short of estimates

Published: Nov 7, 2019 6:43 a.m. ET

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Seaworld Entertainment Inc. shares SEAS, -0.12% slid 3% in premarket trade Thursday after the Orlando, Fla.-based seapark and entertainment company posted weaker-than-expected earnings for the third quarter, hurt by a sharp rise in bad-weather days. The company said it had net income of $98 million, or $1.24 a share, in the third quarter, up from $96 million, or $1.10 a share, in the year-earlier period. Revenue fell to $473.7 million from $483.2 million a year ago. The FactSet consensus was for EPS of $1.38 and revenue of $490 million. Attendance fell by 200,000 guests, or 2.6%, to 8.1 million guests. "While we are disappointed with our financial results in the quarter, we believe these results would have been stronger -- and that we would have grown attendance, total revenue and Adjusted EBITDA -- absent unusually unfavorable weather, a negative calendar shift and a significant overspend of certain marketing related expenses," Interim Chief Executive Marc Swanson said in a statement. Weather events include Hurricane Dorian, which upset attendance over the Labor Day weekend, he said. Separately, the company said it has appointed Sergio Rivera as permanent CEO effective Nov. 11. Rivera comes to the role from his post as CEO of ILG Inc.'s Vacation Ownership Segment and has also done stints at Starwood Hotels. Seaworld shares have gained 17% in 2019, while the S&P 500 SPX, -0.83% has gained 23%.