Can Six Flags Deliver The Results Wall Street Is Hoping For?

Six Flags Entertainment Corporation is scheduled to report its first-quarter earnings for 2023 on May 8 before the stock market opens on Monday. The company is expected to show declines in revenue and earnings as it laps benefits from the recovery of the Theme Park industry after the COVID-19 pandemic.

Related: Six Flags Fiesta Texas Adding “One-of-a-Kind” Attraction

Wall Street analysts are forecasting revenue of $133.5 million for the quarter, down 3% from last year’s period. The consensus estimate for earnings per share is -$0.86 compared and is expected to decrease 13.2% year-over-year.

The company has been enhancing its Guest experience, expanding its membership and season pass programs, and attempting to optimize its cost structure. It has also invested in new attractions and events, such as the Wonder Woman Lasso of Truth ride at Six Flags Fiesta Texas and the Mardi Gras Festival at Six Flags Great America.

The company operates 27 parks across North America and has a loyal fan base of over 3 million active members and season pass holders. It also has a pipeline of international licensing agreements, providing recurring revenue and brand exposure.

Related: Abandoned Six Flags Theme Park Redevelopment Plan Revealed

Six Flags faces weather uncertainties, labor shortages, and competition from other entertainment options. In addition to a stormy macroeconomic outlook, the Theme Park operator could face some headwinds in the next few quarters.

The company’s stock has declined -8.56% year-to-date, underperforming the S&P 500 index, which has risen 8.35% in the same period. Investors will look for continued profitability in the company’s first-quarter results and guidance for the rest of the year.

Despite its track record good historical track record, last quarter, Six Flags reported the continuation of a downward slide in revenue and attendance. The company posted a 26% drop in attendance in 2022. The company reported revenue of $1.358 billion for the full year, a 9% decrease. This is despite a 22% increase in average Guest spending, which rose from $52.40 per Guest in 2021 to $63.93 per Guest in 2022, partially driven by higher admission prices.

Do you think Six Flags will continue to struggle? Let us know what you think by leaving us a comment below.