Q4 Earnings Outperformers: United Parks & Resorts (NYSE:PRKS) And The Rest Of The Leisure Facilities Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at United Parks & Resorts (NYSE:PRKS) 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 slower Q4; on average, revenues beat analyst consensus estimates by 3.2%. while next quarter's revenue guidance was 21.6% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but leisure facilities stocks have shown resilience, with share prices up 6.8% on average since the previous earnings results.
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 $389 million, down 0.4% year on year, falling short of analyst expectations by 1.9%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
The stock is up 7.7% since the results and currently trades at $52.57.
Is now the time to buy United Parks & Resorts? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $558.8 million, up 18.2% year on year, in line with analyst expectations. It was a strong quarter for the company, with a solid beat of analysts' earnings estimates and revenue guidance for next quarter exceeding analysts' expectations.
Life Time scored the highest full-year guidance raise among its peers. The stock is up 19.4% since the results and currently trades at $14.83.
Is now the time to buy Life Time? Access our full analysis of the earnings results here, it's free.
Six Flags (NYSE:SIX)
Sporting the fastest rollercoaster in the United States, Six Flags (NYSE:SIX) is a regional theme park operator offering thrilling rides, entertainment, and family-friendly attractions.
Six Flags reported revenues of $292.6 million, up 4.5% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a miss of analysts' revenue, operating margin, and EPS estimates. On a side note, Six Flags merged with Cedar Fair (NYSE:FUN), another large regional theme park operator, on November 6th, 2023.
The stock is down 3% since the results and currently trades at $23.85.
Read our full analysis of Six Flags's results here.
Bowlero (NYSE:BOWL)
Operating over 300 locations globally, Bowlero (NYSE:BOWL) is a contemporary bowling company merging classic lanes with entertainment and deluxe food offerings.
Bowlero reported revenues of $305.7 million, up 11.8% year on year, surpassing analyst expectations by 1.7%. It was a mixed quarter for the company, with revenue exceeding estimates, driven by better-than-expected bowling center revenue. Its full-year revenue guidance also came in higher than Wall Street's projections. On the other hand, its EPS and operating margin missed Wall Street's estimates.
The stock is up 2.4% since the results and currently trades at $11.89.
Read our full, actionable report on Bowlero here, it's free.
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 $90.2 million, up 26.6% year on year, surpassing analyst expectations by 10.2%. It was a mixed quarter for the company, with revenue exceeding analysts' estimates, driven by better-than-expected equipment and merchandise sales to its franchisees. On the other hand, its operating margin and EPS fell short of Wall Street's projections as it produced less high-margin franchise revenue than expected.
The stock is up 41.6% since the results and currently trades at $14.27.
Read our full, actionable report on Xponential Fitness here, it's free.
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