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 Q1. Today, we are looking at leisure facilities stocks, starting with United Parks & Resorts (NYSE: PRKS).
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 11 leisure facilities stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9% on average since the latest earnings results.
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 $286.9 million, down 3.5% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
"We are pleased to report another quarter of strong financial results," said Marc Swanson, Chief Executive Officer of United Parks &
The stock is down 11.3% since reporting and currently trades at $41.88.
Is now the time to buy United Parks & Resorts? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $280.6 million, down 12.7% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 28.4% since reporting. It currently trades at $38.19.
Is now the time to buy Sphere Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Lucky Strike (NYSE: LUCK)
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Lucky Strike reported revenues of $339.9 million, flat year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Lucky Strike delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6% since the results and currently trades at $8.95.
Read our full analysis of Lucky Strike’s results here.
Topgolf Callaway (NYSE: MODG)
Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE: MODG) sells golf equipment and operates technology-driven golf entertainment venues.
Topgolf Callaway reported revenues of $1.09 billion, down 4.5% year on year. This result beat analysts’ expectations by 2.2%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
Topgolf Callaway had the weakest full-year guidance update among its peers. The stock is up 4.5% since reporting and currently trades at $8.28.
Read our full, actionable report on Topgolf Callaway 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 $567.7 million, down 3.5% year on year. This print met analysts’ expectations. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a slight miss of analysts’ same-store sales estimates.
The stock is up 25.6% since reporting and currently trades at $32.50.
Read our full, actionable report on Dave & Buster's here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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