United Parks Q2 Revenue Misses on Lower International Visits, Shares Buyback Continues
PRKS sits 58% above its 52-week low of $28.77.
Summary
United Parks & Resorts reported Q2 revenue of $483.3M, missing the $492.12M consensus, driven by a 1.4% year-over-year decline and continued weakness in international visitation. Adjusted EBITDA also slightly missed at $195.5M vs. $195.63M expected. The company cited an earlier Easter that reduced holiday days in the quarter. Despite the top-line miss, in-park per capita spending hit a record, and the company repurchased 3.3M shares for $125M, continuing its aggressive buyback program. This follows a Q1 miss and doubled net loss, but forward indicators for Discovery Cove and group business are showing strength, with Halloween event ticket sales ahead of last year. The results add to a mixed picture, with activist investor Hill Path Capital holding a 57.9% stake and the stock trading at 12x forward earnings.
At the time of this announcement, PRKS was trading at $45.51 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $28.77 to $56.95. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.