Why SeaWorld Entertainment Stock Rallied as Much as 22% at the Open Today

Shares of amusement park operator SeaWorld Entertainment (NYSE: SEAS) rose a dramatic 22% in early trading on Feb. 25. Although the large early gain didn't hold, the stock was still higher by roughly 10% at 10:30 a.m. EST. The story was all about earnings.

The fourth quarter of 2020 was not kind to SeaWorld. Attendance at its parks fell by 2.5 million guests in the final three months of the year to 2.2 million, a year-over-year decline of more than 50%. Revenues tallied $154 million, a 48% drop. The company's quarterly loss of $0.58 per share represented an increase of roughly 87% over the $0.31-per-share loss in the final quarter of 2019. The company's business is highly seasonal, so it generally loses money during the cold months when only some of its parks are open. Still, the company's financial results were pretty dismal reading.  

Image source: Getty Images.

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Source Fool.com