Life Time (LTH) Reports Q4: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2024/02/27 2:00 am EST

Premium fitness club Life Time (NYSE:LTH) will be reporting results tomorrow morning. Here's what you need to know.

Last quarter Life Time reported revenues of $585.2 million, up 17.9% year on year, missing analyst expectations by 0.2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

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

This quarter analysts are expecting Life Time's revenue to grow 17.4% year on year to $555.1 million, slowing down from the 31.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

Life Time Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Life Time's peers in the leisure facilities segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Planet Fitness delivered top-line growth of 1.4% year on year, beating analyst estimates by 1% and Topgolf Callaway reported revenues up 5.4% year on year, exceeding estimates by 3.7%. Planet Fitness traded down 2.1% on the results, Topgolf Callaway was down 1.2%.

Read our full analysis of Planet Fitness's results here and Topgolf Callaway's results here.

Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the leisure facilities stocks have fared somewhat better, they have not been spared, with share price declining 4.7% over the last month. Life Time is down 14.2% during the same time, and is heading into the earnings with analyst price target of $21.3, compared to share price of $11.98.

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