NEW YORK (TheStreet) -- Seaworld Entertainment's (SEAS) stock price target was cut to $17 from $24 with an "overweight" rating at KeyBanc Capital this morning after the company delivered in-line earnings but lower-than-expected revenue for the 2016 second quarter.
Last Thursday, the Orlando-based theme park operator reported adjusted earnings of 21 cents per share, which met analysts' estimates. Revenue came in at $371.1 million from $391.6 million a year ago but missed analysts' projections of $374.8 million.
The firm attributes the revenue miss to a 7.6% drop in attendance for the quarter as a result of softer Latin American visitation, a weaker Orlando market, and June's tropical storm Colin.
KeyBanc believes Seaworld's reputation is improving after the company announced in March that it would end the controversial Orca shows and breeding. National polls found perception of the company is now more favorable by 8:1 vs. 7:1 right after the announcement, and the likelihood of people visiting Seaworld jumped to 5:1 vs. 4:1, the firm said.
"While sentiment does not always translate into results, we believe it is a positive sign," KeyBanc wrote.
Shares of Seaworld Entertainment closed up on Friday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Seaworld Entertainment as a Hold with a ratings score of C. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
