Looking back on leisure facilities stocks’ Q4 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 12 leisure facilities stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.6% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13% since the latest 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 $663.3 million, up 18.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
Life Time scored the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.5% since reporting and currently trades at $31.16.
Is now the time to buy Life Time? Access our full analysis of the earnings results here, it’s free .
Best Q4: 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 $5.68 billion, down 2.4% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 13.5% since reporting. It currently trades at $131.74.
Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free .
Slowest Q4: Lucky Strike Entertainment (NYSE:LUCK)
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike Entertainment (NYSE:LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Lucky Strike Entertainment reported revenues of $300.1 million, down 1.8% year on year, falling short of analysts’ expectations by 4.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 9.4% since the results and currently trades at $9.88.
Read our full analysis of Lucky Strike Entertainment’s results here.
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 $384.4 million, down 1.2% year on year. This result beat analysts’ expectations by 1%. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.
The stock is down 20.8% since reporting and currently trades at $43.22.
Read our full, actionable report on United Parks & Resorts here, it’s free.
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 $924.4 million, up 3% year on year. This number topped analysts’ expectations by 4.5%. Aside from that, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts’ expectations.
The stock is flat since reporting and currently trades at $6.71.
Read our full, actionable report on Topgolf Callaway here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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