Stock Analysis

United Parks & Resorts Inc. (NYSE:PRKS) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

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United Parks & Resorts Inc. (NYSE:PRKS) just released its latest first-quarter results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$297m leading estimates by 4.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.17 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on United Parks & Resorts after the latest results.

See our latest analysis for United Parks & Resorts

NYSE:PRKS Earnings and Revenue Growth May 11th 2024

Taking into account the latest results, the consensus forecast from United Parks & Resorts' eleven analysts is for revenues of US$1.78b in 2024. This reflects a reasonable 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to US$4.39. In the lead-up to this report, the analysts had been modelling revenues of US$1.77b and earnings per share (EPS) of US$4.40 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$66.27, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic United Parks & Resorts analyst has a price target of US$80.00 per share, while the most pessimistic values it at US$48.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that United Parks & Resorts' revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. 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 most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for United Parks & Resorts going out to 2026, and you can see them free on our platform here.

Even so, be aware that United Parks & Resorts is showing 2 warning signs in our investment analysis , you should know about...

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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.