Looking back on leisure facilities stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Life Time (NYSE:LTH) 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.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, leisure facilities stocks have held steady amidst all this with share prices up 2% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 5.2%. Overall, it was a stunning quarter for the company with and an impressive beat of analysts’ earnings estimates.
Life Time scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 16.4% since reporting and currently trades at $24.20.
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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, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.
Sphere Entertainment pulled off the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $41.
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.
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.
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 $557.1 million, up 2.8% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ earnings estimates.
The stock is up 6.7% since reporting and currently trades at $31.85.
Planet Fitness (NYSE:PLNT) Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE:PLNT) is a gym franchise which caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $300.9 million, up 5.1% year on year. This number beat analysts’ expectations by 3.5%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
The stock is up 13.2% since reporting and currently trades at $81.52.
This content was originally published on Stock Story
