Six Flags' Roller Coaster Quarter: Earnings Miss Targets, But '2024 Passes Are Ahead Of Last Year,' CEO Says
Portfolio Pulse from Anusuya Lahiri
Six Flags Entertainment Corp (NYSE:SIX) reported a 5% year-on-year sales growth for Q4 fiscal 2023, reaching $293 million, which missed the analyst consensus of $297.5 million. The adjusted EPS was 18 cents, below the consensus of 27 cents. Attendance increased by 6% Y/Y to 4.3 million guests, but total guest spending per capita decreased by 1% Y/Y to $64.19. Operating income and margin significantly declined Y/Y, while adjusted EBITDA remained nearly flat. The company noted early success in sales of 2024 passes, which are ahead of last year. Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ:PSCD), with 1% exposure to SIX, gained close to 6% last month. SIX shares traded higher by 4.07% at $25.60 premarket.
February 29, 2024 | 4:14 pm
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POSITIVE IMPACT
Invesco S&P SmallCap Consumer Discretionary ETF, with 1% exposure to SIX, gained close to 6% last month and may see continued interest due to its association with Six Flags.
Given PSCD's exposure to SIX and the recent positive performance of both assets, the ETF might continue to benefit from Six Flags' operational updates and stock movement.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Six Flags reported lower-than-expected Q4 earnings and revenue, but highlighted early success in 2024 pass sales, indicating potential for future growth.
Despite missing Q4 earnings and revenue expectations, the positive outlook for 2024 pass sales and the premarket stock price increase suggest a short-term positive impact on SIX shares.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100