Yahoo Finance Why Life Time (LTH) Stock Is Trading Up Today
What Happened:
Shares of premium fitness club Life Time (NYSE:LTH) jumped 17% in the morning session after the company reported a "beat and raise" quarter. Second-quarter results outperformed Wall Street's revenue and EPS estimates. Moving on, guidance was promising, as revenue guidance for the full year was lifted from $2.52 billion to $2.58 billion at the midpoint. Zooming out, we think this was a great quarter that shareholders will appreciate. After the initial pop the shares cooled down to $21.39, up 2.8% from previous close.
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What is the market telling us:
Life Time's shares are very volatile and over the last year have had 13 moves greater than 5%. But moves this big are very rare even for Life Time and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock gained 26.5% on the news that the company reported fourth-quarter results that blew past analysts' EPS and adjusted EBITDA expectations. Revenue also came in slightly ahead of expectations, driven by a strong growth in membership. Looking ahead, sales outlook for the next quarter and the full year came in higher than Wall Street's estimates. Overall, this was a strong quarter that should satisfy shareholders.
Life Time is up 46.7% since the beginning of the year, and at $21.39 per share, has set a new 52-week high. Investors who bought $1,000 worth of Life Time's shares at the IPO in October 2021 would now be looking at an investment worth $1,207.
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