Premium fitness club Life Time (NYSE:LTH) will be announcing earnings results tomorrow before market hours. Here's what investors should know.

Life Time met analysts' revenue expectations last quarter, reporting revenues of $558.8 million, up 18.2% year on year. 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.

Is Life Time a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Life Time's revenue to grow 15.2% year on year to $588.5 million, slowing from the 30.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Life Time has missed Wall Street's revenue estimates twice over the last two years.

Looking at Life Time's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Nike posted flat year-on-year revenue, beating analysts' expectations by 1.1%, and Carnival reported revenues up 22%, in line with consensus estimates. Nike traded down 7% following the results while Carnival was also down 4.1%.

Read our full analysis of Nike's results here and Carnival's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 6.2% on average over the last month. Life Time is down 9% during the same time and is heading into earnings with an average analyst price target of $20.8 (compared to the current share price of $13.84).

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