Factors Setting the Tone for SeaWorld (SEAS) in Q1 Earnings | Zacks.com

Historically, the first and fourth quarters of each year are seasonally weak for SeaWorld. The company’s top line is expected to decline sequentially but is poised to witness year-over-year growth. Meanwhile, SeaWorld is increasingly focusing on its marketing strategy to highlight brand attributes and new additions. All of these are expected to boost attendance in the quarter under review. Further, in an effort to drive attendance, the company is introducing new rides at most of its parks. However, declining attendance in California, Texas and Florida markets has been a cause of concern for the company.

Furthermore, the company earlier launched tactical pricing initiatives at several of its locations. The combination of direct price increases and dynamic pricing initiatives might drive admissions per capita in the quarter under review. Nevertheless, we are optimistic about the company’s sincere efforts to control costs without denting efficiency and improve financial standing through debt refinancing. The company expects to achieve net cost savings of $40 million by the end of 2018.

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Factors Setting the Tone for SeaWorld (SEAS) in Q1 Earnings – May 4, 2018 – Zacks.com.