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 AMC Entertainment (NYSE: AMC) 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 1.1% while next quarter’s revenue guidance was in line.

Luckily, leisure facilities stocks have performed well with share prices up 14.2% on average 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 $862.5 million, down 9.3% year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 15.1% since reporting and currently trades at $3.12.

Is now the time to buy AMC Entertainment? 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 9.9% since reporting. It currently trades at $144.21.

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 5.6% since the results and currently trades at $10.05.

Read our full analysis of Lucky Strike’s results here.

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. This number lagged analysts' expectations by 5.6%. In spite of that, it was a strong quarter as it put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.

Sphere Entertainment had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 43.3% since reporting and currently trades at $42.60.

Read our full, actionable report on Sphere Entertainment here, it’s free.

Dave & Buster's (NASDAQ: PLAY)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ: PLAY) operates a chain of arcades providing immersive entertainment experiences.

Dave & Buster's reported revenues of $567.7 million, down 3.5% year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a slight miss of analysts’ same-store sales estimates.

The stock is up 16.7% since reporting and currently trades at $30.20.

Read our full, actionable report on Dave & Buster's 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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