Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Topgolf Callaway (NYSE:MODG) and the best and worst performers in the leisure facilities industry.
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 Q1. As a group, revenues missed analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.
Luckily, leisure facilities stocks have performed well with share prices up 11.1% on average since the latest earnings results.
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 $1.09 billion, down 4.5% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EPS estimates.
"We are pleased with our first quarter results as we met or beat our plan in all segments of our business," commented Chip Brewer, President and CEO.
Topgolf Callaway delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 4.9% since reporting and currently trades at $8.31.
Is now the time to buy Topgolf Callaway? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $280.6 million, down 12.7% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 29.6% since reporting. It currently trades at $38.54.
Is now the time to buy Sphere Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Lucky Strike (NYSE:LUCK)
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE:LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Lucky Strike reported revenues of $339.9 million, flat year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.
Lucky Strike delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $9.60.
Read our full analysis of Lucky Strike’s results here.
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 $51.43 million, flat year on year. This print surpassed analysts’ expectations by 3.7%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
European Wax Center scored the biggest analyst estimates beat among its peers. The stock is up 47.2% since reporting and currently trades at $5.80.
Read our full, actionable report on European Wax Center here, it’s free.
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 $3.38 billion, down 11% year on year. This number lagged analysts' expectations by 2.8%. Taking a step back, it was still a very strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 13.5% since reporting and currently trades at $148.87.
Read our full, actionable report on Live Nation here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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