amusement park operator Six Flags (NYSE:SIX) is stocked trouble Down on the year (-49%). Business was badly affected by the pandemic because a epicenter industry Which experienced prolonged shutdown. reopening and elimination of social distancing The mandates have enabled the company to accelerate its recovery as revenue picks up with rebounding attendance. The company is expanding its margins as revenue climbed 68% in the first quarter of 2022. The world’s largest regional theme park and the largest operator of water parks in North America is undergoing transformation. It is upgrading its operations, appearances, Wi-Fi and food choices during its restructuring Number of Employees A culture of being more customer focused. Six Flags has 27 regional theme parks around the world, averaging 200 acres per location. The company has more than 900 rides and 400 rollercoasters and makes the majority of revenue from theme park admissions and the rest from food and merchandise sales. The company is in rebound mode led by a new CEO who is determined to make enhancing guest experience and satisfaction a top priority. Prudent investors who are looking for risk before improving attendance at amusement parks may look for an opportunistic pullback in Six Flags Entertainment shares.
Q1 Fiscal 2022 Earnings Release
On May 12, 2022, Six Flags released its fiscal first quarter 2022 results for the quarter ended March 2022. The company reported an adjusted earnings-per-share (EPS) loss of ($0.76) excluding non-recurring items versus consensus analyst estimates. For a loss of (-$1.06), outweighed estimates by $0.30. Revenue rose 68.4% year-over-year (YOY) to $138.1 million, beating analyst estimates by $122.26 million. Most parks were not expected to open in the first quarter. Six Flags CEO Selim Bassoul commented, “Six Flags is rapidly implementing actions to improve ride throughput by improving the guest experience, increasing ride uptime, and implementing single rider lanes on busy days; Improving staffing and training of members; Upgrading the appearance of our park, including our front gate, restrooms, and restaurant; Providing better food quality; and Providing more guest amenities such as benches, shade structures, and children’s areas. The culture has been reimagined to prioritize the guest in everything we do, and we fundamentally believe this will drive significant and sustainable long-term income growth.”
Conference Call Takeaways
CEO Bassoul provided color on the continuous improvement with its theme parks. They are focused on the top priority of improving guest experience and guest satisfaction. The top metric is improving ride efficiency and convenience by increasing rides per day per guest. For example, they found in their first 100 days that every time a ride leaves the station 30% of seats are empty because the group doesn’t want to split. To solve this problem, they have implemented single rider lanes on their busiest days to split guests to ride alone, which accelerates the line and fills empty seats. He also implemented skip the line pass and increased staffing with increased training. They are updating the front gates for a good first impression and renovating and modernizing its restaurant. The quality of the food has improved by recruiting a new executive chef and revamping its menu. They’ve revamped their top-selling menu items like burgers, pizza, and chicken, adding healthier options like rotisserie chicken and Asian Crunch salad. Six Flags is adding additional benches and shading, more seating capacity in dining areas, and upgrading its Wi-Fi coverage in parks. Six Flags Interactive is improving the digital experience with digital maps and upgrades to the mobile app. They concluded, “Ultimately, we have refocused our culture on prioritizing guests in everything we do. And we fundamentally believe that in all our efforts to continually improve the guest experience, By focusing, we will generate significant and sustainable income growth over time.”
Six Opportunistic Pullback Levels
using the rifle chart Provides an accurate view of the scenario for the SIX stock on the weekly and daily time frames. There is a falling 5-period moving average (MA) resistance at $27.30 in a weekly Rifle chart downtrend, followed by the 15-period MA at $35.23. Weekly Lower Bollinger Bands (BBs) $19.81 . sits next to Fibonacci (Fib) Levels, The weekly stochastic oscillation collapsed to test a mini reversal pup attempt on the 10-band through the 20-band. weekly Market Structure Less (MSL) Buying started on a breakout through $17.49. The daily Rifle chart is in a downtrend with the 5-period MA at 22.37, followed by the 15-period MA at $26.90, with the daily low BB at $19.37. The daily stochastic fell through the 20-band to stall on the 10-band for a mini reversal pup or cross back up. The daily 50-period MA sits at $32.71 and the daily 200-period MA sits at $39.61. Prudent investors can watch for opportunistic pullback levels at $19.81 Fib, $17.49 Fib daily, $15.28 Fib, $13.49 Fib and $11.27 Fib levels. There is an upward trajectory from the $28.36 Fib level to the $38.79 Fib level.