What Happened?
Shares of theme park operator United Parks & Resorts (NYSE: PRKS) fell 2.1% in the afternoon session after the company reported disappointing fourth-quarter and full-year 2025 financial results that missed expectations and prompted an analyst price target cut.
The theme park operator disclosed that fourth-quarter attendance fell by 2.6% compared to the previous year, with total revenue dropping 2.8% to $373.5 million. Net income saw a significant decline of 46% to $15.1 million. The full fiscal year also showed weakness, with attendance dropping 1.7%. CEO Marc Swanson acknowledged the results, stating they "did not meet our expectations" and pointed to factors like uneven consumer conditions and bad weather. Following the report, JPMorgan lowered its price target on the stock from $48.00 to $43.00, expressing concerns about the company's cost management.
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What Is The Market Telling Us
United Parks & Resorts’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 22.9% on the news that the company reported third-quarter 2025 financial results that missed analyst expectations for both revenue and profit. The theme park operator's revenue fell 6.2% year over year to $511.9 million, missing the consensus estimate of $539.8 million. Similarly, its earnings per share of $1.61 was 28.8% below the anticipated $2.26. The results were driven by a decline in attendance, with 240,000 fewer visitors compared to the same period last year. Profitability also suffered, with the company's operating margin contracting to 29.6% from 36.8% in the prior year's quarter. Adjusted EBITDA, another key profit metric, also came in well below expectations.
United Parks & Resorts is down 3% since the beginning of the year, and at $35.12 per share, it is trading 36.4% below its 52-week high of $55.21 from October 2025. Investors who bought $1,000 worth of United Parks & Resorts’s shares 5 years ago would now be looking at an investment worth $698.47.
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