SeaWorld Entertainment shares could be caught in a downtrend

Theme park and entertainment company SeaWorld Entertainment (NYSE:SEAS) shares fell (-33%) for the year. Theme park operator SeaWorld and Busch Gardens is recovering from reopening after the COVID lockdowns were lifted. Vaccinations were key to a recovery in attendance, which rose 53.7% in the first quarter of 2022 to 3.4 million guests as capacity restrictions and social distancing restrictions were lifted. The company believes that there is a further recovery due to strong momentum, which still does not reflect a normalized environment. International groups are making a comeback as the Company launches new attractions and expands its workforce. To alleviate inflationary pressures, double-digit increases in entry prices were introduced as entry per capita rose by 2.5%. SeaWorld has improved the park experience with improvements to its mobile app, which has been downloaded nearly 1.4 million times, enabling double-digit in-park and e-commerce purchases. Prudent investors looking to gain access to the theme park entertainment space can watch for an opportunistic pullback in SeaWorld Entertainment shares.

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Profit and Loss Statement for the 1st Quarter of Fiscal Year 2022

On May 12, 2022, Six Flags released its first quarter 2022 financial results for the quarter ended March 2022. The company reported an adjusted loss on earnings per share (EPS) of ($0.12) excluding non-recurring items compared to analyst consensus estimates. per loss (-$0.14), beating estimates by $0.02. Revenue rose 57.5% year-on-year (YoY) to $270.70 million, beating analyst estimates of $263.23 million. Attendance increased by 1.2 million guests year-on-year to 3.4 million guests, up 53.7%. Attendance increased by 16.4% compared to the first quarter of 2019 before the pandemic. Adjusted EBITDA was a record $65.9 million, up 161.8% year-on-year. Total per capita income rose 2.5% to a record $79.54 year on year. The company bought back 1.5 million shares of common stock for approximately $109.9 million. The company came to the aid of more than 300 animals in need of wildlife. SeaWorld CEO Mark Swanson commented: “While our first quarter results were strong and continued to gain momentum from 2021, we have room for further recovery as they still do not reflect a normalized operating environment. In particular, international and group attendance is improving but has yet to return to pre-COVID levels, and we have room to improve staff levels to meet even more demand for park spending. million total available liquidity and a net total LTM leverage ratio of just 2.4x.”

Conferencing Conclusions

CEO Swanson noted strong momentum from 2021, accelerating into 2022 with record financial results. He believes that there is further recovery as this is not yet reflected in the normalization of the operating environment. International travelers are returning and pricing power allows the Company to offset cost inflationary pressures. The company opened its first new theme park since 2013, Sesame Place San Diego Park. He addressed debt concerns, noting that LTM’s total leverage ratio has fallen below 2.5X as the company’s total available liquidity is over $745 million, including $380 million in cash. This allows SeaWorld to continue opportunistic investments to increase shareholder value. The labor market is still tight, but the Company is finding better ways to attract, motivate and retain talent, including using an international workforce.

SeaWorld Entertainment shares could be caught in a downtrend

SEAS opportunistic pullback levels

Using rifle charts on weekly and daily timeframes gives an accurate picture of the state of SEAS stock. The weekly rifle chart crashed, temporarily bottoming out around $41.11. Fibonacci level (fibonacci). The weekly downtrend has resistance from a falling 5-period moving average (MA) at $51.72, followed by a 50-period MA at $60.14 and a 15-period MA at $62.16. The weekly lower Bollinger Bands (BB) are at $41.98 as the stochastic falls through the 20-band. The 200 weekly moving average is worth $36.91. Weekly market structure low (MSL) triggers to buy on a break back up through $49.47. The downtrend on the rifle daily chart has a falling 5-period moving average at $44.51 followed by a 15-period moving average at $50.64. Daily lower BBs are at $40.10 as the daily stochastic stalls at the 10 band. The daily 50-period MA is at $59.40 and the 200-period MA resistance is at $62.10, overlapping with the daily upper BBs on the nose. Prudent investors can watch for opportunistic retracement levels at $41.31 Fibonacci, $39.26 Fibonacci, $33.11 Fibonacci, $31.33 Fibonacci, $29.78 Fibonacci and Fibonacci level at $27.44. Upward trajectories range from the $55.21 Fibonacci level to the $70.34 Fibonacci level.


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