Life Time Fitness
The 10-second takeaway
For the quarter ended March 31 (Q1), Life Time Fitness met expectations on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded significantly.
Gross margin contracted, operating margin improved, and net margin improved.
Life Time Fitness logged revenue of $268.4 million. The eight analysts polled by S&P Capital IQ expected a top line of $271.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $240.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The seven earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.62 for Q1 were 22% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.1%, 210 basis points worse than the prior-year quarter. Operating margin was 18.0%, 120 basis points better than the prior-year quarter. Net margin was 9.6%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $288.0 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $2.71.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 157 members out of 352 rating the stock outperform, and 195 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Life Time Fitness a green thumbs-up, and 74 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Life Time Fitness is outperform, with an average price target of $52.89.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.