Sea World is reveling
in recent stockprice gains, fueled by a rise in theme-park attendance.
SeaWorld Entertainment stock closed Tuesday at $21.06 — more than double the company’s lowest price of $10.42 in the past 52 weeks.
The improved Wall Street performance is good news for a company attempting to rebound financially after many well-documented challenges, including tumbling attendance.
“Don't look now, but SeaWorld Entertainment is dousing short-sellers as if they were sitting in the Splash Zone at one of its killer whale shows,” said a recent article by Motley Fool.
Several who follow the themepark operator weighed in on the reasons for the latest success.
SeaWorld posted attendance gains in the first quarter and exceeded Wall Street’s expectations, which has fueled some of the stock jump.
Stifel raised the price goal from $22 to $25 after touring SeaWorld San Diego and noticing busy crowds and more efficient operations, such as closed food and beverage stands in slower parts of the park, according to a June 7 analyst’s note. Sesame Street characters were also more visible than before, the note said.
“Though ‘the numbers’ clearly tell an encouraging story, we thought it would be instructive to take another visit ... to see what the improved operations look like in action. Our recent visit to SeaWorld San Diego did not disappoint,” the Stifel research said.
Others pointed to Electric Ocean, the nighttime party at SeaWorld Orlando that runs on most weekends during the summer, as key to generating more revenue.
CFRA still listed the company’s risk assessment as high because of bad publicity, a competitive leisure industry and “pending legislation that could significantly rein in the company’s ability to feature its killer whale for commercial exhibition,” according to June 9 analyst notes from Tuna Amobi.
But Amobi noted he expected 2018 revenues to increase nearly 4 percent, up from a 6 percent decline in 2017 as attendance dropped.
He predicted attendance will increase “a low-single-digit percentage” as SeaWorld opened new rides. What’s next for Central Florida is Infinity Falls, a raft ride with a 40-foot drop that’s slated to open in late summer at SeaWorld Orlando.
Analysts also are waiting for the company to announce who will take over.
CEO Joel Manby left in February, and company veteran John T. Reilly is serving as interim leader until the company names a permanent chief.