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

Six Flags Entertainment (NYSE:FUN) posted its quarterly earnings data on Thursday. The company reported ($3.59) EPS for the quarter, missing the consensus estimate of $1.93 by ($5.52), FiscalAI reports. Six Flags Entertainment had a positive return on equity of 7.43% and a negative net margin of 57.25%. The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.16 billion. During the same quarter last year, the firm earned ($2.20) EPS. The company’s 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 stock traded up $0.79 during trading on Friday, reaching $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 market cap of $1.03 billion, a price-to-earnings ratio of -1.10 and a beta of 0.50. Six Flags Entertainment has a twelve month low of $6.60 and a twelve month high of $26.28. The company has a debt-to-equity ratio of 43.34, a quick ratio of 0.36 and a current ratio of 0.42. The firm has a 50-day simple moving average of $11.05 and a 200-day simple moving average of $16.73.

Insider Transactions at Six Flags Entertainment

In related news, CEO John Reilly purchased 15,713 shares of the business’s stock in a transaction on Wednesday, August 12th. The shares were acquired at an average price of $15.80 per share, for a total transaction of $248,265.40. Following the purchase, the chief executive officer owned 297,736 shares of the company’s stock, valued at $4,704,228.80. This trade represents a 5.57% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.10% of the company’s stock.

Trending Headlines about 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

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Citigroup cut their price target on shares of Six Flags Entertainment from $17.00 to $13.00 and set a “neutral” rating on the stock in a report on Thursday, October 8th. Truist Financial decreased their price objective on Six Flags Entertainment from $28.00 to $22.00 and set a “buy” rating for the company in a report on Thursday, September 10th. The Goldman Sachs Group reiterated a “neutral” rating and set a $9.00 price objective on shares of Six Flags Entertainment in a report on Friday. Stifel Nicolaus set a $15.00 price objective on Six Flags Entertainment in a research report on Thursday. Finally, UBS Group dropped their target price on Six Flags Entertainment from $27.00 to $18.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. Seven analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given 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 target price of $15.85.

About Six Flags Entertainment

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.