Town Sports International Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Town Sports International Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins increased across the board.
Town Sports International Holdings reported revenue of $122.2 million. The two analysts polled by S&P Capital IQ expected sales of $124.1 million on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $118.3 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 $0.23. The two earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS were $0.23 for Q2 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.5%, 130 basis points better than the prior-year quarter. Operating margin was 11.3%, 240 basis points better than the prior-year quarter. Net margin was 4.4%, 470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $121.9 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $490.2 million. The average EPS estimate is $0.68.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 61 members out of 79 rating the stock outperform, and 18 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Town Sports International Holdings a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Town Sports International Holdings is outperform, with an average price target of $16.50.
- Add Town Sports International Holdings to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.