United Parks & Resorts navigated a challenging second quarter, missing Wall Street’s revenue and profit expectations even as market reaction was positive. Management emphasized that severe weather was a significant headwind, requiring additional promotional activity and higher labor costs to sustain attendance. CEO Marc Swanson highlighted that, despite these obstacles, the company achieved year-over-year attendance growth at its Orlando properties, supported by targeted marketing and events, while non-Orlando locations faced steeper attendance challenges. Swanson acknowledged, “We are a little disappointed and probably could have and should have done a better job of proactively managing some of our park labor and operating expenses in the face of poor weather that impacted demand.”

Is now the time to buy PRKS? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From United Parks & Resorts’s Q2 Earnings Call

• Steven Moyer Wieczynski (Stifel) pressed on whether increased marketing offset Epic Universe’s impact; CEO Marc Swanson confirmed more aggressive marketing and promotions were deployed, especially in Orlando, to sustain attendance.
• James Lloyd Hardiman (Citigroup) asked about the drivers behind declining admissions per capita; Swanson pointed to weather-related promotions, saying, “We had to be more promotional than we’d like,” impacting per-guest revenue across the company.
• Thomas L. Yeh (Morgan Stanley) inquired about international MOUs and hotel initiatives; Swanson said two MOUs are anticipated by year-end and hotel discussions remain ongoing with a capital-light approach considered.
• Elizabeth Dove (Goldman Sachs) questioned persistent attendance weakness at non-Orlando parks; Swanson acknowledged ongoing weather challenges and lower brand awareness, particularly at Busch Gardens Tampa, as key issues.
• Arpine Kocharyan (UBS) sought clarity on spending trends among visitors; Swanson admitted in-park spending was down slightly for the quarter but expressed optimism that upcoming seasonal events could reverse the trend.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will closely watch (1) attendance and spending trends during the Halloween and Christmas event seasons, (2) the effectiveness of newly implemented cost control measures, and (3) progress on international partnership agreements and hotel projects. Additionally, we will monitor the passholder base trajectory and the success of new product and event launches as indicators of longer-term growth and margin improvement.

United Parks & Resorts currently trades at $52.76, up from $46.19 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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