3 Stocks Decline on Wednesday

Financial results send Six Flags, STMicroelectronics and AT&T lower

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Oct 24, 2018
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Shares of Six Flags Entertainment Corp. (SIX, Financial) plunged 11% on Wednesday after announcing third-quarter results. The company posted earnings of $2.16 per share on $619.82 million in revenue, a 6.8% year-over-year increase. The company fell 16 cents short of earnings estimates and $14.37 million short of revenue expectations.

The company attributed its performance to growth in the business and positive impacts from tax reform, despite an increase in stock-based compensation related to the Project 600 award.

“Our five key growth initiatives provide a strong platform for growth for many years to come: we are increasing ticket yields; enhancing recurring revenue through our new membership and loyalty programs and expanding our operating calendar; growing in park revenue, especially culinary sales; expanding our domestic footprint via targeted acquisitions; and pursuing additional Six Flags-branded international parks,” Chairman, President and CEO Jim Reid-Anderson said.

Further, adjusted earnings before interest, taxes, depreciation and amortization grew 2% from the prior-year quarter to $307 million.

Shares of STMicroelectronics N.V. (STM, Financial) fell 12.5% after announcing third-quarter results. The company posted earnings of 41 cents per share on $2.52 billion in revenue, a 17.8% year-over-year increase.

The company's sales benefited from strong growth in Imaging, Power Discrete and Automotive products. The operating income and net income were up year over year and sequentially.

The gross profit reached $1 billion, an increase of 18.6% year over year. The gross margin was 39.8% as a result of product group mix.

Looking ahead to the fourth quarter, the company expects revenues to grow 5.7% sequentially at the midpoint and the gross margin is projected to be roughly 39.8%.

AT&T Inc. (T, Financial) shares tumbled more than 6% on Wednesday on weak financial results. The company posted third-quarter earnings of 90 cents per share on $45.7 billion in revenue. The company fell 7 cents short of earnings estimates, but beat revenue expectations by $320 million.

The Time Warner acquisition had a positive impact on revenue growth and operating income, which increased 25.2% to $7.3 billion. The operating income margin was 15.9%, up from 14.6% in the prior-year quarter.

Disclosure: The author holds no positions in any stocks mentioned.

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