By Will Feuer
Shares of United Parks & Resorts rose after the SeaWorld parent company said its board is recommending a new $500 million share buyback plan and that the company’s capital investments will fall this year.
The stock rose almost 11% to $54.02 in morning trading. Shares are still down about 17% over the past year.
The company on Wednesday reported fourth-quarter sales and earnings that missed Wall Street analysts’ estimates, but the theme-park operator said it is focused on returning capital to shareholders this year.
On a conference call with analysts, Chief Executive Marc Swanson said the company isn’t currently considering any acquisitions and views its shares as undervalued. The board has voted to recommend a new $500 million stock buyback authorization.
Swanson said capital expenditures were also unusually high last year, and the company expects to invest about $225 million back into the business this year, down from nearly $305 million last year.
About $50 million of that CapEx for this year will go toward expansion, Swanson said.
Write to Will Feuer at [email protected]
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