Six Flags (NYSE:SIX) news for Friday is grim as talk of potential opportunities in China drying up sour SIX stock.
An SEC filing from the company reveals that it is uncertain about its future in China. According to the Six Flags news, this is due to its partner in the country defaulting on its payment obligations to SIX.
The Six Flags news notes that this doesn’t mean there is no chance of it opening theme parks in China. However, it does appear that there are significant struggles due to macroeconomics in the country, as well as a declining real estate market.
The negative Six Flags news doesn’t just stop with its China troubles. The company is also adjusting its guidance for the fourth quarter of 2019 due to softer attendance than expected.
Six Flags says that it is now expecting revenue for the fourth quarter of 2019 to come in $8 million to $10 million lower than the same time last year. Revenue for the fourth quarter of 2018 was $269.50 million.
That new information from Six Flags means that it expects revenue to range from $259.50 million to $261.50 million. Unfortunately for SIX stock, Wall Street is looking for revenue of $285.63 million in the fourth quarter of 2019.
It’s bad enough for Six Flags that SIX stock got downgraded twice in just 12 hours from Wells Fargo analyst Timothy Conder. The first downgrade was yesterday and dropped the stock to an “Equal Weight” rating. Following the newest SEC filing, Conder put the stock down to an “Underweight” rating on Friday morning, reports CNBC.
SIX stock was down 18.28% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.