Leisure Facilities Stocks Q2 In Review: AMC Entertainment (NYSE:AMC) Vs Peers

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at leisure facilities stocks, starting with AMC Entertainment (NYSE:AMC).

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.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating 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 3.7% on average since the latest earnings results.

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 $1.03 billion, down 23.5% year on year. This print was in line with analysts’ expectations, and overall, it was a mixed quarter for the company with a  decent beat of analysts’ operating margin estimates.

AMC Entertainment delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 13.5% since reporting and currently trades at $4.28.

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

Best Q2: 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 $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 and earnings estimates.

Life Time achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 24% since reporting. It currently trades at $25.80.

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

Weakest Q2: 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 $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 10.9% since the results and currently trades at $167.37.

Read our full analysis of Vail Resorts’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 $273.4 million, up 112% year on year. This print met analysts’ expectations. It was a very strong quarter as it also logged an impressive beat of analysts’ earnings estimates.

Sphere Entertainment achieved the fastest revenue growth among its peers. The stock is up 11.5% since reporting and currently trades at $45.50.

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

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 $557.1 million, up 2.8% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also recorded an impressive beat of analysts’ earnings estimates.

The stock is up 20.9% since reporting and currently trades at $36.10.

Read our full, actionable report on Dave & Buster's here, it’s free.

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