The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Xponential Fitness (NYSE:XPOF) and the rest of the leisure facilities stocks fared in Q1.
Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.
The 13 leisure facilities stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 1.6%. while next quarter's revenue guidance was 5.2% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but leisure facilities stocks have performed well, with the share prices up 13.3% on average since the previous earnings results.
Xponential Fitness (NYSE:XPOF) Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.
Xponential Fitness reported revenues of $79.52 million, up 12.5% year on year, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates.
“2024 is off to a strong start,” said Anthony Geisler, CEO of Xponential Fitness,
The stock is up 38.9% since reporting and currently trades at $18.67.
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Best Q1: United Parks & Resorts (NYSE:PRKS) Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
United Parks & Resorts reported revenues of $297.4 million, up 1.4% year on year, outperforming analysts' expectations by 4.5%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a narrow beat of analysts' visitors estimates.
The market seems happy with the results as the stock is up 19.5% since reporting. It currently trades at $58.71.
Weakest Q1: Dave & Buster's (NASDAQ:PLAY) Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ:PLAY) operates a chain of arcades providing immersive entertainment experiences.
Dave & Buster's reported revenues of $588.1 million, down 1.5% year on year, falling short of analysts' expectations by 4.5%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Dave & Buster's posted the weakest performance against analyst estimates in the group. As expected, the stock is down 22.3% since the results and currently trades at $39.16.
Cedar Fair (NYSE:FUN) Originally a lakeside resort, Cedar Fair (NYSE:FUN) operates amusement parks and resorts, delivering thrilling experiences and family entertainment across North America.
Cedar Fair reported revenues of $101.6 million, up 20.2% year on year, surpassing analysts' expectations by 9%. Zooming out, it was a strong quarter for the company with an impressive beat of analysts' visitors estimates.
The stock is up 26.9% since reporting and currently trades at $52.12.
Life Time (NYSE:LTH) With over 150 locations and gyms that include saunas and steam rooms, Life Time (NYSE:LTH) is an upscale fitness club emphasizing holistic well-being and fitness.
Life Time reported revenues of $596.7 million, up 16.8% year on year, surpassing analysts' expectations by 1.4%. Zooming out, it was an ok quarter for the company with a miss of analysts' earnings estimates.
Life Time achieved the highest full-year guidance raise among its peers. The stock is up 53.6% since reporting and currently trades at $21.
This content was originally published on Stock Story
