As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure facilities industry, including AMC Entertainment (NYSE: AMC) 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 12.5% since the latest earnings results.
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 $1.31 billion, up 18.3% year on year. This print exceeded analysts’ expectations by 1.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
Unsurprisingly, the stock is down 16.8% since reporting and currently trades at $2.73.
Read our full report on AMC Entertainment 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 an impressive beat of analysts’ EPS estimates and a solid 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 12.6% since reporting. It currently trades at $133.16.
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 and EPS estimates.
As expected, the stock is down 15.4% since the results and currently trades at $9.23.
Read our full analysis of Lucky Strike Entertainment’s results here.
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 number met analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
Life Time scored the highest full-year guidance raise among its peers. The stock is down 1.2% since reporting and currently trades at $31.23.
Read our full, actionable report on Life Time here, it’s free.
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 $308.3 million, down 1.9% year on year. This print beat analysts’ expectations by 6.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Sphere Entertainment achieved the biggest analyst estimates beat among its peers. The stock is down 32.6% since reporting and currently trades at $29.41.
Read our full, actionable report on Sphere Entertainment 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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