Life Time Fitness Earnings: Here’s Why Investors are Not Happy Now

Life Time Fitness Inc. (NYSE:LTM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.81%.

Life Time Fitness Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.59% to $0.80 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 6.87% to $308.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Life Time Fitness Inc. reported adjusted EPS income of $0.8 per share. By that measure, the company beat the mean analyst estimate of $0.79. It beat the average revenue estimate of $307.76 million.

Quoting Management: “Our unrelenting focus on the member experience continues to differentiate the high quality of our centers and programs, and emphasizes our strong business model,” said Bahram Akradi, chairman, president and chief executive officer. “As our company has evolved so has the precision with which we operate our centers and serve our members. This has allowed us to deliver strong business results and created a solid platform for future growth through new center expansion and our portfolio of healthy way of life programs and services delivered both inside and outside of our destinations.”

Key Stats (on next page)…

Revenue increased 5.97% from $290.75 million in the previous quarter. EPS increased 19.4% from $0.67 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.83 and has not changed. For the current year, the average estimate has moved up from a profit of $2.91 to a profit of $2.93 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)