Cedar Fair Earnings: What To Look For From FUN

Radek Strnad /
2024/05/08 3:03 am EDT

North American amusement park operator Cedar Fair (NYSE:FUN) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Cedar Fair beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $842 million, flat year on year. It was a strong quarter for the company, with a decent beat of analysts' earnings estimates.

Is Cedar Fair a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Cedar Fair's revenue to grow 1.4% year on year to $367 million, slowing from the 4.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Cedar Fair Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cedar Fair has missed Wall Street's revenue estimates three times over the last two years.

Looking at Cedar Fair's peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dave & Buster's delivered year-on-year revenue growth of 6.3%, meeting analysts' expectations, and Inspired reported revenues up 6%, topping estimates by 11%. Dave & Buster's traded up 10.3% following the results while Inspired was down 3.8%.

Read our full analysis of Dave & Buster's results here and Inspired's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Cedar Fair's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $51.3 (compared to the current share price of $41).

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