Six Flags (SIX) Is An Industry-Leading Re-Opening Play With Potential For Upside Surprise

Six Flags (SIX) reported earnings on February 24th. The company outperformed expectations. The loss of a dollar a share was roughly in line with estimates, while Its revenue loss was significantly less than expected by consensus. Other positive undercurrents in this earnings report suggest that the nadir of the crisis for theme parks, in North America at least, has passed. That’s good news for Six Flags since its’ facilities blanket the continent. The company recently announced it plans to open all 26 locations in the coming season. Consumers flush with stimulus coming out of a depressing and trying period marked by detachment from the experiential economy seem poised to answer the company’s invitation. 

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Source: Six Flags Investor Relations

Despite the obvious financial hardship with missing a season due to a global pandemic, many metrics appear to indicate that when consumers do come back at the levels, or in excess of them, that were common prior to the pandemic they will be spending more. This is not an incredibly difficult business to understand; a lot of customers will be coming to the company’s parks as long as progress on the virus isn’t significantly reversed and by the looks of it they will be spending more than they have in the past when they do. This appea...
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