ORLANDO, Fla. - United Parks & Resorts Inc. (NYSE: PRKS), a prominent player in the theme park and entertainment sector, disclosed preliminary financial outcomes for its second quarter, noting a marginal uptick in attendance and projecting stable revenues and net income in comparison to the prior year.`
The company, which is yet to complete its financial statements for the quarter ending June 30, 2024, reported preliminary attendance figures of approximately 6.2 million guests, a slight increase from the 6.1 million guests during the same period in 2023. Expected total revenues for the quarter are estimated to be in the range of $495 million to $500 million, closely aligned with the $496.0 million reported in the second quarter of 2023.
Projected net income is anticipated to be between $87 million and $95 million, which is comparable to the $87.1 million earned in the second quarter of the previous year. However, the company anticipates a decrease in Adjusted EBITDA, with estimates ranging from $215 million to $220 million, down from $224.2 million reported in the second quarter of 2023.
These preliminary figures are subject to change as the company completes its standard financial closing and review processes. The final results, including full financial statements and disclosures for the six months ended June 30, 2024, could materially differ from these preliminary estimates.
United Parks & Resorts Inc. oversees a diverse portfolio of park brands, including SeaWorld (NYSE:PRKS)®, Busch Gardens®, and Aquatica®, among others. The company is recognized for its commitment to animal welfare and its role in rescuing and caring for animals in need, with a history spanning nearly 60 years.
It is important to note that the company's use of Adjusted EBITDA, a non-GAAP financial measure, is not indicative of net income or cash provided by operating activities as determined under GAAP. Adjusted EBITDA has its limitations and may not be comparable to similar measures used by other companies.
United Parks & Resorts has seen a series of positive developments. Truist Securities increased its price target on United Parks & Resorts shares to $68.00, maintaining a Buy rating, based on the company's rising demand trends. Similarly, B.Riley raised its price target for the company's shares to $84, reiterating a Buy rating, in anticipation of the finalization of a merger between Cedar Fair (NYSE:FUN), L.P. and Six Flags (NYSE:SIX) Entertainment Corporation.
United Parks & Resorts' Q1 earnings for 2024 surpassed market expectations, leading to a revenue increase of $4 million and a $7 million growth in EBITDA. Mizuho increased the company's price target to $48 following these impressive results.
Recently, United Parks & Resorts shareholders elected a new board and ratified KPMG LLP as the independent auditor for the current fiscal year. Shareholders also approved a $500 million share repurchase program, signaling confidence in the company's financial health.
InvestingPro Insights
As United Parks & Resorts Inc. (NYSE: PRKS) navigates through its financial year, the company's performance metrics provide a deeper insight into its market position and future prospects. With a market capitalization of $3.47 billion, PRKS has shown a noteworthy operating income margin over the last twelve months as of Q1 2024 at 29.33%, signaling efficient management and potential resilience in its operational strategy.
InvestingPro Tips suggest that while the company does not pay dividends, indicating a potential reinvestment of earnings into growth and operations, analysts are optimistic about PRKS's profitability, forecasting the company to be profitable this year. This aligns with the company's reported net income projections for the second quarter of 2024, which are consistent with the previous year's figures. The company's stock price movements have been quite volatile, which is a factor for investors to consider when evaluating their investment strategy.
Key financial metrics from InvestingPro Data reveal a P/E ratio (adjusted) of 12.93, which may appeal to value investors looking for potentially undervalued stocks. Additionally, the company's revenue growth for the most recent quarter in Q1 2024 stands at 1.39%, indicating a steady, albeit modest, top-line growth. For those interested in a deeper dive into the company's financial health, InvestingPro offers additional insights; there are currently 5 more InvestingPro Tips available at https://www.investing.com/pro/PRKS. These tips could further inform investment decisions, and users can benefit from a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
With the next earnings date scheduled for August 7, 2024, investors will be keenly watching for the finalized financial statements to validate the preliminary figures and to gauge the company's trajectory in the context of its industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.