Premium fitness club Life Time (NYSE:LTH) will be reporting earnings tomorrow before market hours. Here’s what to look for.
Life Time beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $693.2 million, up 18.5% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Life Time a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Life Time’s revenue to grow 18.2% year on year to $660.7 million, in line with the 18.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Life Time has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.
Looking at Life Time’s peers in the leisure facilities segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Live Nation’s revenues decreased 2.4% year on year, beating analysts’ expectations by 1.4%, and Planet Fitness reported revenues up 19.4%, topping estimates by 4.9%. Live Nation traded down 1.9% following the results.
Read our full analysis of Live Nation’s results here and Planet Fitness’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the leisure facilities stocks have shown solid performance, the group has generally underperformed, with share prices down 3.4% on average over the last month. Life Time is up 6.5% during the same time and is heading into earnings with an average analyst price target of $32.46 (compared to the current share price of $32).
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