Life Time Group Holdings experienced a surge in its shares following a strong performance in the fourth quarter, accompanied by significant membership growth. The company also provided guidance for double-digit revenue growth in the coming year.
Financial Performance
After the announcement, shares opened 27% higher at $15.78, bringing the stock back into positive territory for the year. In the fourth quarter, the operator of fitness and spa centers reported adjusted earnings of 19 cents per share, surpassing analysts’ expectations of 10 cents per share. Revenue saw a substantial increase, rising nearly a quarter to $558.8 million compared to analyst projections of $555.5 million.
Membership Growth
Center memberships grew by 5.2% from the previous year, while revenue from center offerings, representing a quarter of its revenue base, increased by 11%.
Future Outlook
Based in Chanhassen, Minnesota, the company forecasts revenue in the range of $2.46 billion to $2.5 billion in 2024, reflecting a growth of approximately 12% from the previous year. This outlook aligns with current analyst estimates.
Life Time Group Holdings’ robust performance and optimistic outlook position the company for continued success in the fitness and spa industry.