SeaWorld Stock Sinks as Killer Whale Controversy Hurts Attendance Read Latest Breaking News from Newsmax Newsmax/Finance/SeaWorld-stock-whale-controversy/2014/08/13/id/588500/#ixzz3Bq3HEahz Urgent: Should Obamacare Be Repealed? Vote Here Now! newsmax/Finance/SeaWorld-stock-whale-controversy/2014/08/13/id/588500/ Shares of SeaWorld Entertainment Inc. dropped to a record low Wednesday after the theme-park operator reported earnings that missed analysts’ estimates and said controversy over the treatment of captive whales in its shows hurt attendance. The shares tumbled 33 percent to $18.90 at the close in New York, the lowest since they started trading in April 2013. Before Wednesday, SeaWorld had retreated 23 percent in a year following the release of “Blackfish,” a critical documentary about its performing killer whales. The company acknowledged for the first time that pressure from animal-rights groups is reducing attendance, said Barton Crockett, an analyst at FBR & Co., calling second-quarter results “surprisingly weak.” SeaWorld fought off a proposed ban on keeping orcas in captivity in California with a lobbying campaign that raised doubts about claims that the animals are harmed in its parks. “Attendance in the quarter was impacted by demand pressures related to recent media attention surrounding proposed legislation in the state of California,” Orlando, Florida-based SeaWorld said in a statement. SeaWorld expects revenue to decline as much 7 percent in 2014. Sales fell 1.5 percent to $405.2 million last quarter, the company said, missing the $445.2 million average of estimates compiled by Bloomberg. Earnings of 43 cents a share also trailed the average prediction of 58 cents. Attendance at the company’s 11 parks increased 0.3 percent in the quarter from a year earlier, reflecting better weather and a later Easter holiday this year, the company said. FBR had estimated 4.3 percent growth, Crockett, who rates the shares market perform, said in a note to investors. Read Latest Breaking News from Newsmax Newsmax/Finance/SeaWorld-stock-whale-controversy/2014/08/13/id/588500/#ixzz3Bq3Qemuy Urgent: Should Obamacare Be Repealed? Vote Here Now!
Posted on: Sat, 30 Aug 2014 02:29:43 +0000
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