Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at 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 13 leisure facilities stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 12.6%. while next quarter's revenue guidance was 5.2% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but leisure facilities stocks have shown resilience, with share prices up 8.2% on average since the previous earnings results.
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, exceeding analysts' expectations by 1.4%. Overall, it was an mixed quarter for the company with a miss of analysts' earnings estimates.
Life Time pulled off the highest full-year guidance raise of the whole group. The stock is up 50.8% since reporting and currently trades at $20.62.
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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 an 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 11.8% since reporting. It currently trades at $54.93.
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 30% since the results and currently trades at $35.25.
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 $234.9 million, up 3.6% year on year, surpassing analysts' expectations by 152%. Zooming out, it was a strong quarter for the company with an impressive beat of analysts' visitors estimates.
Cedar Fair pulled off the biggest analyst estimates beat among its peers. The stock is up 13.5% since reporting and currently trades at $46.63.
Topgolf Callaway (NYSE:MODG) Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells golf equipment and operates technology-driven golf entertainment venues.
Topgolf Callaway reported revenues of $1.14 billion, down 2% year on year, falling short of analysts' expectations by 1.1%. Taking a step back, it was an ok quarter for the company with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.
Topgolf Callaway had the weakest full-year guidance update among its peers. The stock is down 1.5% since reporting and currently trades at $16.09.
This content was originally published on Stock Story
