Cedar Fair Misses on Both Revenue and Earnings

Cedar Fair (NYSE: FUN  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cedar Fair missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP loss per share didn't change. GAAP loss per share expanded.

Gross margins contracted, operating margins grew, net margins dropped.

Revenue details
Cedar Fair logged revenue of $129.2 million. The three analysts polled by S&P Capital IQ expected a top line of $131.4 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $144.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.15. The two earnings estimates compiled by S&P Capital IQ averaged -$0.03 per share. Non-GAAP EPS of -$0.15 were the same as the prior-year quarter. GAAP EPS were -$0.19 for Q4 compared to -$0.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.8%, 10 basis points worse than the prior-year quarter. Operating margin was 8.1%, 230 basis points better than the prior-year quarter. Net margin was -8.0%, 760 basis points worse than the prior-year quarter.

Looking ahead
On the bottom line, the average EPS estimate is -$0.95.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $2.34.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 359 members out of 436 rating the stock outperform, and 77 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Cedar Fair a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cedar Fair is buy, with an average price target of $41.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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