SeaWorld Leisure, Inc. Beat Analysts Estimates: See What Consensus Forecasts For This Yr
A week ago, SeaWorld Entertainment, Inc. (NYSE: SEAS) released a series of strong numbers for the second quarter that could potentially re-evaluate the stock. The statutory earnings performance was extremely strong, with sales of $ 440 million beating expectations by 30% and earnings per share (EPS) of $ 1.59, an impressive 446% above expectations. Analysts typically update their projections with each earnings report, and their estimates allow us to judge whether their view of the company has changed or if there are new concerns. Readers will be pleased to know that we’ve rounded up the latest regulatory guidance to see if analysts have changed their minds about SeaWorld Entertainment following the latest results.
Check out our latest analysis for SeaWorld Entertainment
NYSE: SEAS earnings and revenue growth August 8, 2021
According to the latest results, the ten analysts at SeaWorld Entertainment are now forecasting sales of 1.49 billion US dollars in 2021. If this is met, this would reflect a significant increase in sales of 70% compared to the previous 12 months. SeaWorld Entertainment will also be profitable with statutory earnings of $ 3.03 per share. Before this earnings report, analysts had sales of 1.27 billion per share for 2021, a decent increase according to the latest estimates.
Although analysts raised their earnings estimates, the consensus price target of $ 62.30 hasn’t changed, suggesting that forecasted performance has no long-term impact on company valuation. However, there is another way to think about price targets and that is to look at the range of analysts’ suggested price targets, as a wide range of estimates could suggest a different view of possible outcomes for the business. The most bullish analyst at SeaWorld Entertainment has a price target of $ 79.00 per share, while the most pessimistic analyst estimates it at $ 47.00. As you can see, analysts disagree on the future of the stock, but the range of estimates is still relatively narrow, which could suggest the outcome isn’t entirely unpredictable.
These estimates are interesting, but it can be useful to make some broader lines when you see how projections compare with both SeaWorld Entertainment’s past performance and competitors in the same industry. One thing stands out from these estimates, which is that SeaWorld Entertainment is expected to grow faster in the future than it has in the past, with revenue expected to show annualized growth of 191% through the end of 2021. If this is achieved, it would be a far better result than the 12% annual decline over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in the industry are forecasting revenue growth of 20% per year. Not only is SeaWorld Entertainment revenue expected to improve, but it appears that analysts expect it to grow faster than the industry as a whole.
The bottom line
Most importantly, analysts have raised their earnings per share estimates, suggesting that optimism about SeaWorld Entertainment has increased significantly following these results. Fortunately, they’ve also raised their sales estimates, and their projections suggest the business is likely to grow faster than the industry as a whole. The consensus price target remained unchanged at $ 62.30, with recent estimates insufficient to affect the price targets.
Against this background, the long-term development of corporate profits is much more important than next year. We have estimates – from several SeaWorld Entertainment analysts – up to 2023 and you can find them here for free on our platform.
Note, however, that SeaWorld Entertainment is showing 2 warning signs in our investment analysis , you should know that…
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