Let’s dig into the relative performance of Topgolf Callaway (NYSE:MODG) and its peers as we unravel the now-completed Q4 leisure facilities earnings season.
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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 1.6% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.9% since the latest 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 $924.4 million, up 3% year on year. This print exceeded analysts’ expectations by 4.5%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts’.
"We are pleased with our strong finish to the year with fourth quarter revenue, adjusted EBITDA and adjusted free cash flow exceeding expectations," commented Chip Brewer, President and CEO.
The stock is down 5.9% since reporting and currently trades at $6.30.
Read our full report on Topgolf Callaway here, it’s free.
Best Q4: 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 $5.68 billion, down 2.4% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 13.2% since reporting. It currently trades at $132.27.
Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Xponential Fitness (NYSE:XPOF)
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 $83.22 million, down 6.8% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Xponential Fitness delivered the weakest full-year guidance update in the group. As expected, the stock is down 31.9% since the results and currently trades at $8.30.
Read our full analysis of Xponential Fitness’s results here.
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 $308.3 million, down 1.9% year on year. This result topped analysts’ expectations by 6.9%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Sphere Entertainment scored the biggest analyst estimates beat among its peers. The stock is down 23.7% since reporting and currently trades at $33.32.
Read our full, actionable report on Sphere Entertainment 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 $663.3 million, up 18.7% year on year. This print met analysts’ expectations. It was a strong quarter as it also put up a solid beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
Life Time delivered the highest full-year guidance raise among its peers. The stock is down 4.2% since reporting and currently trades at $30.30.
Read our full, actionable report on Life Time here, it’s free.
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