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Q1 Earnings Outperformers: Live Nation (NYSE:LYV) And The Rest Of The Leisure Facilities Stocks


Anthony Lee /
2024/07/10 4:53 am EDT

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the leisure facilities stocks, including Live Nation (NYSE:LYV) 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 13 leisure facilities stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 1.6%. while next quarter's revenue guidance was 5.2% below consensus. 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 due to mixed inflation data, but leisure facilities stocks have shown resilience, with share prices up 8.6% on average since the previous 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 $3.8 billion, up 21.5% year on year, exceeding analysts' expectations by 16.6%. Overall, it was a mixed quarter for the company. Live Nation blew past analysts' revenue projections this quarter as it sold more fee-bearing tickets than expected. On the other hand, its operating margin missed and its EPS fell short of Wall Street's estimates.

"Our Q1 results demonstrate that live events remain a priority for fans around the world. Global fan demand is stronger than ever, more artists are out on the road, and more venues are being added to bring them together. While operating income will be impacted by one-time accruals, we're on track to deliver another record year with double-digit AOI growth and years of momentum still to come."

Live Nation Total Revenue

Live Nation pulled off the biggest analyst estimates beat of the whole group. The stock is up 7.1% since reporting and currently trades at $94.49.

Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $297.4 million, up 1.4% year on year, outperforming analysts' expectations by 4.5%. It was a very good quarter for the company with an impressive beat of analysts' earnings estimates and a narrow beat of analysts' visitors estimates.

United Parks & Resorts Total Revenue

The market seems happy with the results as the stock is up 11.6% since reporting. It currently trades at $54.84.

Is now the time to buy United Parks & Resorts? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $588.1 million, down 1.5% year on year, falling short of analysts' expectations by 4.5%. It was a weak quarter for the company with a miss of analysts' earnings estimates.

Dave & Buster's had the weakest performance against analyst estimates in the group. As expected, the stock is down 23% since the results and currently trades at $38.78.

Read our full analysis of Dave & Buster's results here.

Cedar Fair (NYSE:FUN)

Originally a lakeside resort, Cedar Fair (NYSE:FUN) operates amusement parks and resorts, delivering thrilling experiences and family entertainment across North America.

Cedar Fair reported revenues of $101.6 million, up 20.2% year on year, surpassing analysts' expectations by 9%. Looking more broadly, it was a strong quarter for the company with an impressive beat of analysts' visitors estimates.

The stock is up 35.7% since reporting and currently trades at $55.75.

Read our full, actionable report on Cedar Fair here, it's free.

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 $596.7 million, up 16.8% year on year, surpassing analysts' expectations by 1.4%. Looking more broadly, it was a 'beat and raise' quarter that the market cheers. The company exceeded expectations for revenue and adjusted EBITDA and raised its full year guidance for both metrics.

Life Time delivered the highest full-year guidance raise among its peers. The stock is up 36.9% since reporting and currently trades at $18.72.

Read our full, actionable report on Life Time here, it's free.

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