Six Flags Entertainment Earnings: Here’s Why Investors Don’t Like These Results

Six Flags Entertainment Corp. (NYSE:SIX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.63%.

Six Flags Entertainment Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 26.56% to $0.47 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Decreased 2.99% to $363.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Six Flags Entertainment Corp. reported adjusted EPS income of $0.47 per share. By that measure, the company missed the mean analyst estimate of $0.53. It missed the average revenue estimate of $370 million.

Quoting Management: “I am pleased with our record year-to-date financial performance, despite cooler temperatures and unprecedented levels of precipitation at our eastern and mid-western parks during the second quarter,” said Jim Reid-Anderson, Chairman, President and CEO. “Our exciting new attractions and all-time high guest-satisfaction ratings have propelled our performance to new highs. We remain on track to deliver our aspirational target of $500 million of Modified EBITDA or approximately $3 of cash earnings per share by 2015.”

Key Stats (on next page)…

Revenue increased 315.56% from $87.52 million in the previous quarter. EPS increased to $0.47 in the quarter versus EPS of $-0.62 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.58 to a profit $1.69. For the current year, the average estimate has moved up from a profit of $1.08 to a profit of $1.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)