Looking back on leisure facilities stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Vail Resorts (NYSE: MTN) 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 1.1% while next quarter’s revenue guidance was in line.
Luckily, leisure facilities stocks have performed well with share prices up 14.8% on average since the latest earnings results.
Vail Resorts (NYSE: MTN)
Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE: MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.
Vail Resorts reported revenues of $1.30 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ skier visits estimates.
Commenting on the Company's fiscal 2025 third quarter results, Rob Katz, Chief Executive Officer, said, "Results in the quarter reflect the stability provided by our season pass program as Resort net revenue, excluding
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $155.64.
Is now the time to buy Vail Resorts? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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, falling short of analysts’ expectations by 2.8%. However, the business still had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 14.1% since reporting. It currently trades at $149.73.
Is now the time to buy Live Nation? 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 estimates and a miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 5.4% since the results and currently trades at $10.03.
Read our full analysis of Lucky Strike’s results here.
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 result surpassed analysts’ expectations by 2.2%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations significantly.
Topgolf Callaway had the weakest full-year guidance update among its peers. The stock is up 23% since reporting and currently trades at $9.74.
Read our full, actionable report on Topgolf Callaway here, it’s free.
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 topped analysts’ expectations by 3.7%. 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 achieved the biggest analyst estimates beat among its peers. The stock is up 18% since reporting and currently trades at $4.65.
Read our full, actionable report on European Wax Center here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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