Premium fitness club Life Time (NYSE:LTH) will be reporting earnings tomorrow before market hours. Here’s what you need to know.
Life Time beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $667.8 million, up 18.9% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ same-store sales and earnings estimates.
Is Life Time a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Life Time’s revenue to grow 18.5% year on year to $693.2 million, in line with the 17.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Life Time has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Life Time’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Life Time is up 2.5% during the same time and is heading into earnings with an average analyst price target of $27.83 (compared to the current share price of $26.01).
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