Earnings To Watch: United Parks & Resorts (PRKS) Reports Q3 Results Tomorrow

Theme park operator United Parks & Resorts (NYSE:SEAS) will be announcing earnings results tomorrow morning. Here’s what investors should know.

United Parks & Resorts met analysts’ revenue expectations last quarter, reporting revenues of $497.6 million, flat year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates and a miss of analysts’ operating margin estimates. It reported 6.19 million attendance, flat year on year.

Is United Parks & Resorts a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting United Parks & Resorts’s revenue to be flat year on year at $550.5 million, improving from the 3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.18 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 10 analysts). United Parks & Resorts has missed Wall Street’s revenue estimates four times over the last two years.

Looking at United Parks & Resorts’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bowlero delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 4.3%, and Life Time reported revenues up 18.5%, in line with consensus estimates. Bowlero traded up 11.9% following the results while Life Time was down 7.1%.

Read our full analysis of Bowlero’s results here and Life Time’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.3% on average over the last month. United Parks & Resorts is up 8.7% during the same time and is heading into earnings with an average analyst price target of $61.18 (compared to the current share price of $53.05).

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