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Leisure Facilities Stocks Q1 Highlights: Sphere Entertainment (NYSE:SPHR)


Radek Strnad /
2024/07/11 7:45 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Sphere Entertainment (NYSE:SPHR) and the best and worst performers in the leisure facilities industry.

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. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but leisure facilities stocks have shown resilience, with share prices up 8.4% on average since the previous earnings results.

Sphere Entertainment (NYSE:SPHR)

Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms.

Sphere Entertainment reported revenues of $321.3 million, up 98.3% year on year, falling short of analysts' expectations by 1%. It was a weak quarter for the company with a miss of analysts' earnings estimates.

Executive Chairman and CEO James L. Dolan said, "With the second consecutive quarter of robust revenues and positive adjusted operating income at the Sphere segment, our early results continue to demonstrate Sphere's potential to disrupt the traditional venue model. We are encouraged by the demand for this new medium and remain confident in our future growth opportunities. "

Sphere Entertainment Total Revenue

Sphere Entertainment pulled off the fastest revenue growth of the whole group. The stock is up 2.7% since reporting and currently trades at $42.4.

Read our full report on Sphere Entertainment 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 strong 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 13% since reporting. It currently trades at $55.49.

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 27.3% since the results and currently trades at $36.65.

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

European Wax Center (NASDAQ:EWCZ)

Founded by two siblings, European Wax Center (NASDAQ:EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.

European Wax Center reported revenues of $51.87 million, up 4% year on year, in line with analysts' expectations. Looking more broadly, it was a weaker quarter for the company with and full-year revenue guidance missing analysts' expectations.

The stock is down 14% since reporting and currently trades at $9.37.

Read our full, actionable report on European Wax Center 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 mixed 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 38.8% since reporting and currently trades at $18.98.

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

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