Copyright Benzinga
Six Flags Entertainment Corporation (NYSE:FUN) shares slipped Friday as a sales miss and a softer outlook overshadowed an earnings beat. The stock has since recovered those losses and is now trading higher. Management cited ineffective demand efforts and heavier advertising, while exploring a branding tie-up with NFL superstar Travis Kelce, following a JANA-led stake. The company reported third-quarter adjusted earnings per share of $3.28, beating the analyst consensus estimate of $2.20. Also Read: Conduent Cuts 2025 Revenue Forecast, But CEO Says Capital Plan On Track With Cash Cushion Quarterly sales of $1.318 billion (down 2% year over year) missed the Street view of $1.333 billion. Attendance rose 1% to 21.1 million, an increase of about 138,000 visits. Growth was led by parks that generate most of park-level modified EBITDA. Adjusted EBITDA came in at $555 million, slipping $3 million from the same quarter last year. In-park per-capita spending was $59.08, down 4% from $61.27 in the year-ago period. Admissions per-capita was $31.48 (down 8%), while in-park products rose to $27.60 (up 2%). Out-of-park revenue increased 6%, rising $6 million to $108 million. The gain was fueled largely by higher sponsorship activity. “Our efforts to stimulate demand did not achieve the desired returns and our decision to shift to more advertising spend earlier in the year in an effort to drive consumer awareness further impacted third quarter results, particularly at our underperforming parks,” said Six Flags President and CEO Richard Zimmerman. Zimmerman said a JANA Partners–led group, including Travis Kelce, took a significant stake in Six Flags. He noted the company is actively engaging with the group to boost shareholder value. Six Flags is exploring a broader branding partnership with Kelce’s team, leveraging his longtime connection to the parks. These talks align with ongoing investments to modernize brands, sustain cultural relevance, and deepen guest connections. Outlook Lowered The company anticipates full-year 2025 adjusted EBITDA of $780 million to $805 million (prior view: $860 million to $910 million). Elevated Short Interest The company has a short float of 19.65 million shares, representing 23.03% of its publicly traded float, indicating a relatively elevated level of short interest among investors betting against the stock. Price Action: FUN shares were trading higher by 3.21% to $18.98 at last check Friday. Read Next: Bitcoin Drops Below $100,000 As ETH, XRP Lose 5% And $92,000 Looms Image via Shutterstock
