Q2 Earnings Highs And Lows: Xponential Fitness (NYSE:XPOF) Vs The Rest Of The Leisure Facilities Stocks

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure facilities industry, including Xponential Fitness (NYSE:XPOF) 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 12 leisure facilities stocks we track reported a strong Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.8% below.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut’s timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

In light of this news, leisure facilities stocks have held steady with share prices up 4.5% on average since the latest earnings results.

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Xponential Fitness reported revenues of $76.52 million, down 1.1% year on year. This print fell short of analysts’ expectations by 8.5%. Overall, it was a mixed quarter for the company with a miss of analysts’ earnings estimates.

“During my first six weeks, I’ve enjoyed the opportunity to meet with many of our dedicated franchisees and employees,” said Mark King, CEO of Xponential Fitness,

Xponential Fitness delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 24.8% since reporting and currently trades at $12.80.

Read our full report on Xponential Fitness here, it’s free.

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 $667.8 million, up 18.9% year on year, outperforming analysts’ expectations by 5.2%. The business had a stunning quarter with an impressive beat of analysts’ same-store sales estimates.

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Life Time scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 25% since reporting. It currently trades at $26.

Is now the time to buy Life Time? Access our full analysis of the earnings results here, it’s free.

Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE:MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.

Vail Resorts reported revenues of $265.4 million, down 1.6% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a miss of analysts’ skier visits and earnings estimates.

As expected, the stock is down 8% since the results and currently trades at $172.75.

Read our full analysis of Vail Resorts’s results here.

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 $273.4 million, up 112% year on year. This number was in line with analysts’ expectations. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ earnings and operating margin estimates.

Sphere Entertainment achieved the fastest revenue growth among its peers. The stock is up 14.1% since reporting and currently trades at $46.55.

Read our full, actionable report on Sphere Entertainment here, it’s free.

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 $6.02 billion, up 7% year on year. This result met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ operating margin estimates but a miss of analysts’ earnings estimates.

The stock is up 20.8% since reporting and currently trades at $114.33.

Read our full, actionable report on Live Nation here, it’s free.

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