Six Flags Entertainment (NYSE:FUN) Releases Quarterly Earnings Results, Misses Expectations By $5.52 EPS

Six Flags Entertainment (NYSE:FUN) posted its earnings results on Thursday. The company reported ($3.59) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.93 by ($5.52), FiscalAI reports. Six Flags Entertainment had a negative net margin of 57.25% and a positive return on equity of 7.43%. The company had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same quarter last year, the business posted ($2.20) EPS. Six Flags Entertainment’s quarterly revenue was down 11.0% compared to the same quarter last year.

Here are the key takeaways from Six Flags Entertainment’s conference call:

• Third-quarter same-park revenue rose 1.4% to $1.17 billion and Adjusted EBITDA increased 1.1% to $493 million, with the company holding a 42% margin despite weather challenges. Attendance was essentially flat, while per-capita spending increased 1.3% and fewer complimentary tickets improved attendance quality.
• For the first nine months, same-park Adjusted EBITDA grew about 11% to $639.5 million and margins expanded roughly 200 basis points. Reported free cash flow was $257 million, up about $300 million year over year, alongside $275 million of debt reduction and $1.06 billion in quarter-end liquidity.
• October attendance fell 9% year over year amid unfavorable weather and the Georgia incident and related ride closures; management expects fourth-quarter Adjusted EBITDA of $140 million-$150 million, down from $166.9 million a year earlier. The company still expects full-year same-park Adjusted EBITDA to grow, but described the October shortfall as a headwind.
• A guest died at Six Flags Over Georgia, prompting an investigation and a company-wide ride safety review supported by independent specialists. The company said some ride closures affected October visitation, while it could not yet comment further on the incident pending the investigation.
• Management cited a 7% year-over-year increase in the active pass base at September’s end and cross-park visits running about five times last year’s level. It is also reviewing parks and real estate for potential sales to reduce debt, while targeting mid-30% Adjusted EBITDA margins and net leverage of about four times over time.

Six Flags Entertainment Stock Performance

FUN traded up $0.79 on Friday, hitting $10.03. The company had a trading volume of 11,218,551 shares, compared to its average volume of 5,953,021. The company has a debt-to-equity ratio of 43.34, a current ratio of 0.42 and a quick ratio of 0.36. Six Flags Entertainment has a 1-year low of $6.60 and a 1-year high of $26.28. The company’s fifty day moving average price is $11.05 and its 200 day moving average price is $16.73. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -1.10 and a beta of 0.50.

Key Headlines Impacting Six Flags Entertainment

Here are the key news stories impacting Six Flags Entertainment this week:

• Positive Sentiment: Longer-term indicators improved: the active pass base grew 7% year over year, and free cash flow for the first nine months improved by $300 million. Six Flags: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Barclays lowered its price target from $22 to $13 but maintained an “overweight” rating; the new target implies 29.6% upside from the cited $10.03 price, though the sizable reduction reflects a more cautious valuation. Barclays stock recommendations
• Negative Sentiment: Third-quarter EPS was a loss of $3.59, far below analysts’ expected $1.93 profit. Revenue of $1.17 billion slightly topped estimates but fell 11% year over year. The company also cut its profit outlook after October setbacks, including attendance pressure following a fatal Georgia coaster incident, and announced a ride-safety review. Six Flags narrows losses, but October’s double blow forces profit outlook cut
• Negative Sentiment: Two law firms announced investigations into potential securities claims related to Six Flags, adding legal and reputational uncertainty for investors. Six Flags investors notified of securities fraud investigation

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Mizuho set a $5.00 price target on Six Flags Entertainment in a report on Wednesday, October 21st. Stifel Nicolaus set a $15.00 price objective on Six Flags Entertainment in a research report on Thursday. Weiss Ratings restated a “sell (e+)” rating on shares of Six Flags Entertainment in a research note on Wednesday, August 12th. JPMorgan Chase & Co. lowered their target price on shares of Six Flags Entertainment from $26.00 to $22.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 11th. Finally, Citizens Jmp cut their price objective on Six Flags Entertainment from $24.00 to $14.00 and set a “market outperform” rating for the company in a report on Thursday, October 22nd. Seven equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Six Flags Entertainment has an average rating of “Hold” and an average price target of $15.85.

Insider Transactions at Six Flags Entertainment

In other news, CEO John Reilly purchased 15,713 shares of the business’s stock in a transaction on Wednesday, August 12th. The stock was purchased at an average price of $15.80 per share, with a total value of $248,265.40. Following the acquisition, the chief executive officer directly owned 297,736 shares in the company, valued at approximately $4,704,228.80. The trade was a 5.57% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is owned by corporate insiders.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation is a regional theme park operator headquartered in Charlotte, North Carolina. The company owns and operates amusement parks, water parks and resort properties, offering roller coasters, family rides, live entertainment, seasonal events, food and beverage, merchandise, and other guest experiences. Its portfolio includes parks operating under the Six Flags, Cedar Fair and affiliated brand names, including Six Flags Great Adventure, Cedar Point, Knott’s Berry Farm and Kings Island.

The company serves guests primarily in the United States, as well as in Canada and Mexico.