Shares of theme park and entertainment company SeaWorld Entertainment, Inc. (SEAS) have surged 93.9% over the past 12 months. Its portfolio includes 12 destination and regional theme parks in key markets across the U.S.
In its recent Q3 showing, SeaWorld’s revenue jumped 391% year-over-year to $521.2 million, but missed estimates by $15.3 million. Earnings per share at $2.13 beat expectations by $0.34. In 2022, the company plans to open 11 new rides and attractions in 10 parks. Additionally, a new park is expected to open on the West Coast in March.
SeaWorld’s upcoming earnings for the fourth quarter are expected on March 1. Consensus estimates point to earnings per share of $0.34 for this period. It had incurred a net loss per share of $0.58 a year ago. With these developments in mind, let’s have a look at what’s changed in SeaWorld’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, SeaWorld’s top risk category is Finance & Corporate, contributing 39% to the total 51 risks identified. In its recent quarterly report, the company has added two key risk factors.
SeaWorld noted that it has identified a material weakness in its internal control over financial reporting. The company plans to implement a remediation plan at the earliest in this regard. The elements of this plan can only be implemented over time, and any failure to maintain effective controls over-reporting could adversely affect SeaWorld.
SeaWorld also highlighted that new regulations requiring mandatory vaccination of employees for COVID-19 could adversely impact the company.
Compared to a sector average of 14%, SeaWorld’s Macro & Political risk factor is at 8%.
Hedge Fund Activity
According to TipRanks data points, the Wall Street’s top hedge funds have increased holdings in SeaWorld by 88.4 thousand shares in the last quarter, indicating a positive hedge fund confidence signal in the stock based on activities of 5 hedge funds in the recent quarter.
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