Life Time Fitness
The 10-second takeaway
For the quarter ended June 30 (Q2), Life Time Fitness met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew.
Gross margins dropped, operating margins grew, net margins grew.
Life Time Fitness booked revenue of $308.1 million. The nine analysts polled by S&P Capital IQ expected sales of $308.0 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $288.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.80. The nine earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS of $0.80 for Q2 were 9.6% higher than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 42.6%, 300 basis points worse than the prior-year quarter. Operating margin was 19.7%, 10 basis points better than the prior-year quarter. Net margin was 10.8%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $316.2 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $2.93.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 170 members out of 353 rating the stock outperform, and 183 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Life Time Fitness a green thumbs-up, and 46 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 $54.63.
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