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Q1 Earnings Highs And Lows: Topgolf Callaway (NYSE:MODG) Vs The Rest Of The Leisure Facilities Stocks


Max Juang /
2024/07/02 3:51 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure facilities stocks fared in Q1, starting with Topgolf Callaway (NYSE:MODG).

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 6.7% on average since the previous earnings results.

Topgolf Callaway (NYSE:MODG)

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Topgolf Callaway reported revenues of $1.14 billion, down 2% year on year, falling short of analysts' expectations by 1.1%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.

"We are pleased with our overall first quarter results with consolidated revenue and Topgolf same venue sales being in line with our guidance and our achieving better than expected net income, Adjusted EBITDA, EPS and cash performance," commented Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands.

Topgolf Callaway Total Revenue

Topgolf Callaway delivered the weakest full-year guidance update of the whole group. The stock is down 9.3% since the results and currently trades at $14.82.

Is now the time to buy Topgolf Callaway? 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 an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.

United Parks & Resorts Total Revenue

The stock is up 11.8% since the results and currently trades at $54.9.

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. The stock is down 23.9% since the results and currently trades at $38.33.

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

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%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Life Time delivered the highest full-year guidance raise among its peers. The stock is up 35% since the results and currently trades at $18.46.

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

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%. It was an ok quarter for the company, with a decent beat of analysts' visitors estimates but a miss of analysts' earnings estimates.

The stock is up 27.1% since the results and currently trades at $52.2.

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

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