SeaWorld Stock Falls 5% As Profit, Revenue Miss Estimates

SeaWorld Entertainment Inc. shares fell 5% in premarket trade, after the company reported weaker-than-expected profit and revenue for the second quarter. The theme park operator said net income came to $5.8 million, or 7 cents a share, down from $37.4 million, or 43 cents a share, in the year-earlier period. Adjusted per-share earnings came to 22 cents, well below the FactSet consensus of 40 cents. Revenue fell to $391.6 million from $405.2 million, compared with a FactSet consensus of $397 million. Attendance fell to 6.478 million from 6.584 million, which the company said was due to the timing of Easter, record rainfall in Texas and continued brand challenges in California. The company has struggled since the release of the "Blackfish" documentary that alleged cruelty in its handling of Orcas. It has worked to overcome the fallout with a television ad campaign. "Early feedback on our campaign has been positive, however, we recognize that fully resolving our brand challenges in California will require sustained focus and commitment to correct misinformation," Chief Executive Joel Manby said in a statement. Shares are down about 19% in the last three months, while the S&P 500 has gained 1%.