Looking back on leisure facilities stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Xponential Fitness (NYSE:XPOF) 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 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 10.8% on average since the latest earnings results.
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 $76.88 million, down 3.5% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Xponential Fitness achieved the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 29.6% since reporting and currently trades at $7.80.
Is now the time to buy Xponential Fitness? 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 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.
Planet Fitness (NYSE:PLNT)
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE:PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $276.7 million, up 11.5% year on year. This print came in 1.2% below analysts' expectations. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.
Planet Fitness pulled off the fastest revenue growth among its peers. The stock is up 5.1% since reporting and currently trades at $107.
Read our full, actionable report on Planet Fitness here, it’s free.
AMC Entertainment (NYSE:AMC)
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.
AMC Entertainment reported revenues of $862.5 million, down 9.3% year on year. This result lagged analysts' expectations by 0.7%. More broadly, it was actually a strong quarter as it produced an impressive beat of analysts’ EBITDA estimates.
The stock is up 11.4% since reporting and currently trades at $3.02.
Read our full, actionable report on AMC Entertainment 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.
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