Looking back on leisure facilities stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Live Nation (NYSE:LYV) and its peers.
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 11 leisure facilities stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.8% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, leisure facilities stocks have held steady with share prices up 4% on average since the latest earnings results.
Live Nation (NYSE:LYV) Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE:LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Live Nation reported revenues of $6.02 billion, up 7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates.
Interestingly, the stock is up 10.2% since reporting and currently trades at $104.32.
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Best Q2: 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 $667.8 million, up 18.9% year on year, outperforming analysts’ expectations by 5.2%. The business had a stunning quarter with and an impressive beat of analysts’ earnings estimates.
Life Time achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 16.4% since reporting. It currently trades at $24.20.
Weakest Q2: 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 $76.52 million, down 1.1% year on year, falling short of analysts’ expectations by 8.5%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
Xponential Fitness delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 21.3% since the results and currently trades at $13.38.
Sphere Entertainment (NYSE:SPHR) Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms.
Sphere Entertainment reported revenues of $273.4 million, up 112% year on year. This number was in line with analysts’ expectations. It was a very strong quarter as it also produced an impressive beat of analysts’ earnings and operating margin estimates.
Sphere Entertainment delivered the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $41.
European Wax Center (NASDAQ:EWCZ) Founded by two siblings, European Wax Center (NASDAQ:EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.
European Wax Center reported revenues of $59.87 million, up 1.3% year on year. This print came in 2.4% below analysts' expectations. It was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations.
The stock is up 5.8% since reporting and currently trades at $7.33.
This content was originally published on Stock Story
