SIX - Theme park stocks rally after Six Flags sees stronger-than-anticipated attendance

2023-05-08 11:06:30 ET

Six Flags Entertainment Corporation ( NYSE: SIX ) soared 21.30% in early trading on Monday and carved out a two-month high of $28.50 following a strong earnings report.

While Q1 is typically a slow month for the theme park industry, the read-through from the Six Flags ( SIX ) report was that attendance and spending trends were better than anticipated amid concerns about the weather during the quarter and overall consumer discretionary spending trends.

"With attendance down modestly, vs. expectations for more meaningful declines, coupled with growth in per caps, we believe the results are positive for the shares," updated Jefferies analyst David Katz. "Note that we take the results in context of the proportionally lower seasonality vs. 2Q-3Q, although the stability in results vs. the past year is positive," he added.

In late morning trading on Monday, Cedar Fair, L.P. ( FUN ) gained 1.69% and SeaWorld Entertainment ( SEAS ) rose 2.96% .

More on theme park stocks:

• The Future Of Cedar Fair: Why Investors Should Look Beyond Short-Term Fears
• SeaWorld Confronts An Inflation Monster
• Read a recap of the Six Flags earnings highlights
• Compare metrics and ratings on SIX, SEAS and FUN
• See which leisure facilities stocks have the highest Seeking Alpha Quant Rating

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