Life Time Group Shares Fall 6% Following Q4 Results

Life Time Group Holdings, Inc (NYSE:LTH) dropped more than 6% on Wednesday after the company reported its Q4 results, with revenue of $472.7 million coming in slightly lower than the Street estimate of $472.88 million. EPS was $0.07, better than the Street estimate of $0.05.

Adjusted EBITDA came in at $107M million (up 123% year-over-year), driven in part by sales leverage, as well as meaningful cost reductions, both in-center and on the G&A line.

The company expects Q1/23 revenue in the range of $505-510 million, compared to the Street estimate of $509.8 million. For the full year, the company expects revenue of $2.2-2.3 billion, compared to the Street estimate of $2.25 billion.

Life Time Group Holdings, Inc. (NYSE:LTH) shares dropped more than 10% on Friday following the company’s Q4 results, with EPS of ($1.64) coming in worse than the consensus estimate of ($0.41). Revenue was $360.5 million, compared to the consensus estimate of $356.92 million. The company’s Q4 comp growth of 52% was roughly in line with expectations, though profitability was lower than expected, due in part to additional club investments.

As expected, Q1 will be impacted by Omicron headwinds, though these appear to have largely passed. Looking ahead, the company should see further tailwinds from reduced COVID restrictions and pricing benefits from new club openings and legacy dues increases.

Despite a tough start to the year, the analysts at RBC Capital still see the company as an attractive reopening play, maintaining their outperform rating while lowering their price target to $16 from $21.