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What Awaits Six Flags Entertainment (SIX) in Q1 Earnings?

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Six Flags Entertainment Corporation is scheduled to report first-quarter 2023 results on May 8, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 39.1% but revenues missed the same by 0.8%.

SIX’s earnings topped analysts’ expectations in two of the trailing four quarters and missed on other two occasions, with the average surprise being 5.7%.

Trend in Estimate Revision

The Zacks Consensus Estimate for loss per share has narrowed to 85 cents over the past 30 days from 86 cents. In the prior-year quarter, SIX reported a loss per share of 76 cents. The consensus mark for revenues is pegged at $132.7 million, down 3.9% year over year.

Factors to Note

The company’s quarterly performance is expected to have witnessed the impact of lower attendance, owing to higher ticket prices, the elimination of free tickets and heavily-discounted pass products.

Nonetheless, the company’s to-be-reported quarter’s admissions spending per capita is likely to have benefited from higher realized ticket prices, a higher mix of single-day tickets and revenues from memberships beyond the initial 12-month commitment period.

Also, the company has been focusing on reducing operating costs via full-time headcount reductions, fewer total employee hours worked and lower advertising costs.

Lower revenues are likely to have offset the company’s cost-saving efforts. However, higher wage rates and increases in repair and maintenance, utilities, and other costs due to inflation are likely to have put pressure on margins.

The Zacks Consensus Estimate for Admissions revenues per capita is pegged at $42.4 compared with $43.3 reported in the prior-year quarter. The consensus estimate for Park Admissions revenues is pegged at $68 million compared with $73 million reported in the year-ago quarter.

The consensus estimate for Park food, merchandise and other revenues is pegged at $53 million compared with $54 million reported in the year-ago quarter. The consensus estimate for Sponsorship, international agreements and accommodations revenues is pegged at $11 million compared with $10.9 million reported in the year-ago quarter.

What the Zacks Model Says

Our proven model predicts an earnings beat for SIX this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of +0.59%.

Zacks Rank: It currently carries a Zacks Rank #3.

Other Stocks Poised to Beat Earnings

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.

Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +105.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Wynn Resorts have gained 59.5% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.

DISH Network Corporation has an Earnings ESP of +21.55% and a Zacks Rank #3.

Shares of DISH Network have declined 75.8% in the past year. DISH’s earnings surpassed estimates thrice in the trailing four quarters and missed once, the average surprise being 63.4%.

Playa Hotels & Resorts N.V. (PLYA - Free Report) has an Earnings ESP of +40.22% and carries a Zacks Rank #2.

Shares of Playa Hotels & Resorts have increased 14.5% in the past year. PLYA’s earnings beat estimates in each of the trailing four quarters, the average surprise being 419.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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