Things Are Bad at Theme Parks, but Things Could Be Worse
SeaWorld Entertainment (NYSE: SEAS) announced its financial results for the historically potent summer season on Thursday morning. Like folks sitting in the first few rows of one of its throwback killer whale shows, the report was all wet. Revenue plummeted 78% for the third quarter, and a year-ago profit was replaced by a larger-than-expected loss.
The lack of earnings and the sharp top-line drop may seem problematic, but it's par for the course in an industry that faces a long turnaround. Investors have accepted that this is how things are in the new normal, and SeaWorld stock has actually more than tripled since bottoming out in the middle of March. With Comcast (NASDAQ: CMCSA) posting similar results last week -- and industry bellwether Walt Disney (NYSE: DIS) likely to follow suit next week -- it's a bad time for the theme park operators, but as bad as things may seem, they could always be worse.
Image source: SeaWorld Entertainment.
Source Fool.com
