Town Sports International Holdings Earnings: Here’s Why Investors are Ambivalent Now

Town Sports International Holdings Inc. (NASDAQ:CLUB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Town Sports International Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.5% to $0.18 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 3.02% to $119.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Town Sports International Holdings Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.16. It missed the average revenue estimate of $119.55 million.

Quoting Management: There was no comment from the management.

Key Stats (on next page)…

Revenue increased 4.36% from $114.22 million in the previous quarter. EPS increased 12.5% from $0.16 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.25 to a profit $0.2. For the current year, the average estimate has moved down from a profit of $0.81 to a profit of $0.69 over the last ninety days.

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

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