Life Time Group Holdings Inc. stock LTH rose 10% in premarket trade Wednesday, after the operator of athletic country clubs posted better-than-expected profit for the fourth quarter and offered upbeat guidance for 2023. Chanhassen, Minn.-based Life Time posted net income of $13.7 million or 7 cents a share, for the quarter, after a loss of $304.8 million, or $1.64 a share, in the year-earlier period. Revenue rose to $472.7 million from $360.5 million a year ago. The FactSet consensus was for EPS of 5 cents and revenue of $473 million. Chief Executive Bahram Akradi said the company is entering 2023 “with great momentum,” and would prioritize improving its balance sheet, including by growing revenue and expanding margins. Revenue growth in the fourth quarter was driven by strong growth in membership dues and in-center revenue, boosted by the company’s pricing strategy, increasing memberships and great use of in-center offerings by its members. The company is now expecting first-quarter revenue of $505 million to $510 million and full-year 2023 revenue $2.2 billion to $2.3 billion. The FactSet consensus is for first-quarter revenue of $510 million and full-year revenue of $1.8 billion. The stock has gained 38% in the last 12 months, while the S&P 500 SPX has fallen 4.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.