Is Six Flags a Buy After Earnings?http://www.fool.com/investing/general/2013/10/25/is-six-flags-a-buy-after-earnings.aspx Michael Lewis
October 25, 2013
Though very expensive, cyclical businesses to run, theme parks enjoyed a period of growth in the wake of the financial crisis as families looked to less-expensive vacations. The trend stuck, and a few of the publicly traded players have fared extraordinarily well. Even Comcast-owned Universal's theme parks, once a troubled spot for the conglomerate, are showing up on the company's financials as one of the brightest spots. A pure play on the business, Six Flags (NYSE: SIX), has seen similar fortunes -- along with its investors. Since mid-2010, the stock is up more than 300%. The company just issued earnings that missed analyst expectations, but it couldn't stop the market from rallying the stock yet again. Is Six Flags bound to keep tracking up?
Below estimates, but above water
The terrible event aside, Six Flags still performed impressively and achieved record revenues of $505 million -- a 4% gain over the prior year's number. On a comparable sales basis, Six Flag's EBITDA grew by 4% in the quarter, and is up 8% so far this year. By 2015, the company is look