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 Live Nation (NYSE: LYV) 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 Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.4% below.
While some leisure facilities stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
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 $7.01 billion, up 16.3% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Live Nation achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5% since reporting and currently trades at $156.07.
Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $1.40 billion, up 35.6% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
AMC Entertainment pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $2.77.
Is now the time to buy AMC Entertainment? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $557.4 million, flat year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
As expected, the stock is down 26.1% since the results and currently trades at $17.90.
Read our full analysis of Dave & Buster’s results here.
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 $76.21 million, flat year on year. This number came in 1.5% below analysts' expectations. It was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations.
The stock is down 29% since reporting and currently trades at $6.83.
Read our full, actionable report on Xponential Fitness here, it’s free for active Edge members.
United Parks & Resorts (NYSE: PRKS)
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
United Parks & Resorts reported revenues of $490.2 million, down 1.5% year on year. This result lagged analysts' expectations by 2.1%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EPS and adjusted operating income estimates.
The stock is up 13.1% since reporting and currently trades at $52.24.
Read our full, actionable report on United Parks & Resorts here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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