Looking back on leisure facilities stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Vail Resorts (NYSE:MTN) 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 11 leisure facilities stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.4% below.
In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.
Vail Resorts (NYSE:MTN)
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 $271.3 million, up 2.2% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates.
Commenting on the Company's fiscal 2025 results, Rob Katz, Chief Executive Officer, said, "The Company achieved 2% growth in Resort Reported EBITDA despite total skier visits declining 3% across our North American destination mountain resorts and regional ski areas versus the prior year."
Interestingly, the stock is up 4.9% since reporting and currently trades at $155.45.
Read our full report on Vail Resorts here, it’s free.
Best Q2: AMC Entertainment (NYSE:AMC)
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.
AMC Entertainment reported revenues of $1.40 billion, up 35.6% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
AMC Entertainment pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $3.09.
Is now the time to buy AMC Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $557.4 million, flat year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
As expected, the stock is down 24.5% since the results and currently trades at $18.28.
Read our full analysis of Dave & Buster’s results here.
Planet Fitness (NYSE:PLNT)
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE:PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $340.9 million, up 13.3% year on year. This result topped analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ same-store sales estimates.
The stock is down 5.6% since reporting and currently trades at $103.32.
Read our full, actionable report on Planet Fitness here, it’s free.
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 $7.01 billion, up 16.3% year on year. This number beat analysts’ expectations by 3.4%. It was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
Live Nation delivered the biggest analyst estimates beat among its peers. The stock is up 4.9% since reporting and currently trades at $155.92.
Read our full, actionable report on Live Nation here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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