United Parks & Resorts Inc. Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next
United Parks & Resorts Inc. PRKS | 0.00 |
Shareholders might have noticed that United Parks & Resorts Inc. (NYSE:PRKS) filed its quarterly result this time last week. The early response was not positive, with shares down 4.4% to US$44.14 in the past week. Statutory earnings per share fell badly short of expectations, coming in at US$1.34, some 23% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$483m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, United Parks & Resorts' eleven analysts currently expect revenues in 2026 to be US$1.66b, approximately in line with the last 12 months. Statutory per share are forecast to be US$2.99, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.68b and earnings per share (EPS) of US$3.64 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
The consensus price target held steady at US$47.80, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values United Parks & Resorts at US$55.00 per share, while the most bearish prices it at US$40.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that United Parks & Resorts' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 4.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than United Parks & Resorts.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for United Parks & Resorts. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$47.80, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for United Parks & Resorts going out to 2028, and you can see them free on our platform here..
Don't forget that there may still be risks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
