SeaWorld's stock plummeted yesterday after an earnings report showed that revenue is down and the company missed earnings estimates. The stock fell about 36 percent since Tuesday.
The documentary "Blackfish" could be eating into the company's profits. The earnings report released by SeaWorld this week did admit that attendance has fallen this year as a result of recently proposed legislation in California that was introduced following the CNN documentary.
Revenue was down $6.1 million, or 1 percent, since last year at the same time. Year-to-date, revenue is down 5 percent from the first six months of 2013.
From the SeaWorld press release:
Overall attendance for the quarter improved due to a shift in the timing of Easter into the second quarter in 2014 along with favorable weather compared to the same quarter in 2013. This increase was offset by lower attendance at the company's destination parks due to a combination of factors, including a late start to summer for some schools in the company's key source markets, new attraction offerings at competitor destination parks, and a delay in the opening of one of the company's new attractions. In addition, the company believes attendance in the quarter was impacted by demand pressures related to recent media attention surrounding proposed legislation in the state of California.
The Orca Welfare and Safety Act, introduced earlier this year in California, would ban the use of orcas for performance or entertainment purposes. The vote on the bill was delayed to research the issue.
Screening investments for environmental, social and/or corporate governance factors, or ESG, is also known as socially responsible investing. Investors can actually have an impact on company policies.
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Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.