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Why United Parks & Resorts (PRKS) Shares Are Plunging Today

Max Juang
·2 min read
PRKS Cover Image
Why United Parks & Resorts (PRKS) Shares Are Plunging Today

What Happened:

Shares of theme park operator United Parks & Resorts (NYSE:SEAS) fell 5.9% in the morning session after the company provided underwhelming preliminary Q2'24 earnings results. Management expects revenue to fall between $495 million and $500 million (below consensus estimates of $504.9m). In addition, adjusted EBITDA is expected to be approximately $215 million to $220 million (below consensus estimates of $225.2m). Overall, the estimates indicate weaknesses in sales and profitability, suggesting that investors might not be too optimistic in the near term.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy United Parks & Resorts? Access our full analysis report here, it's free.

What is the market telling us:

United Parks & Resorts's shares are somewhat volatile and over the last year have had 6 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

United Parks & Resorts is down 1% since the beginning of the year, and at $52.40 per share it is trading 11.3% below its 52-week high of $59.05 from July 2024. Investors who bought $1,000 worth of United Parks & Resorts's shares 5 years ago would now be looking at an investment worth $1,715.

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