The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure facilities stocks fared in Q3, starting with Live Nation (NYSE:LYV).
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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 4.5% below.
While some leisure facilities stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.
Best Q3: 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 $7.65 billion, down 6.2% year on year. This print fell short of analysts’ expectations by 2.1%, but it was still a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
Live Nation delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 4.2% since reporting and currently trades at $129.11.
Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.
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 $260.3 million, flat year on year, outperforming analysts’ expectations by 4.2%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 1% since reporting. It currently trades at $192.87.
Is now the time to buy Vail Resorts? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $453 million, down 3% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.
Dave & Buster's delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.9% since the results and currently trades at $29.50.
Read our full analysis of Dave & Buster’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 $227.9 million, up 93.1% year on year. This result beat analysts’ expectations by 2.7%. Zooming out, it was a decent quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.
Sphere Entertainment achieved the fastest revenue growth among its peers. The stock is down 8.6% since reporting and currently trades at $40.32.
Read our full, actionable report on Sphere Entertainment here, it’s free.
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 $545.9 million, flat year on year. This number missed analysts’ expectations by 0.8%. It was a slower quarter as it also produced a miss of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $56.71.
Read our full, actionable report on United Parks & Resorts here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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