Six Flags shares slide 6.8% premarket as theme park operator swings to loss during pandemic

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Six Flags Entertainment Corp. shares slid 6.8% in premarket trade Wednesday, after the theme park operator posted weaker-than-expected third-quarter earnings, as attendance was hurt by the pandemic. The company swung to a loss of $116 million, or $1.37 a share, in the quarter, after earnings $180 million, or $2.11 a share, in the year-earlier period. Revenue fell to $126 million from $621 million. The FactSet consensus was for a loss of 96 cents a share, and revenue of $143 million. Nine of the company’s 26 parks were closed in the quarter because of the pandemic and the parks that were open had attendance limitations. “While operating conditions continue to be challenging, attendance trends improved from a range of 20% to 25% of prior year levels upon the initial reopening of certain parks in the second quarter to approximately 35% in the third quarter, for the parks that were open,” the company said in a statement. The company has made progress on a transformation plan that aims to recover profitability. Attendance was 2.6 million guests, down 11.4 million from the year-earlier period. Shares have fallen 52% in the year to date, while the S&P 500 has gained 5%.
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