Six Flags Reports Increased Loss Despite Revenue Growth

Six Flags Entertainment Corp. (FUN) reported a larger Q4 loss than anticipated. While revenue rose by 85.2%, the net loss and EPS figures fell short of Street estimates, potentially impacting stock prices negatively.

Date: 27-02-2025

AI Rating: 4

EPS: The company reported an EPS of -$2.76, significantly worse than -$0.20 from the prior year, indicating a deterioration in profitability. This miss is notable, given the analysts were expecting a positive EPS of $0.4. Revenue Growth: Six Flags showcased impressive revenue growth of 85.2%, reaching $687 million, compared to $371 million last year. This indicates a strong recovery and demand within their offerings, which could have a positive effect on future stock prices if the trend continues. Net Income: The net income fell to -$264 million from a loss of -$10 million, reflecting a substantial increase in losses year over year. This could lead to investor concerns about the company's profitability moving forward. Outlook: The CEO indicated a positive outlook for 2025, focusing on cost synergies and improved attendance. The target of a 4% reduction in operating costs could enhance efficiency in the long run but remains dependent on executing the strategies effectively. In summary, while the revenue growth is a bright spot that could drive interest, the larger loss and missed EPS expectations may outweigh this and generate caution among investors. Strong revenue growth needs to be couched with improved profitability metrics to bolster investor confidence.

Stocks: FUN