Investing.com -- Shares of Life Time Group Holdings, Inc. (NYSE:LTH) soared 12% following the company's preliminary estimated financial results for the fourth quarter and full year of fiscal 2024, which exceeded Wall Street's expectations. The fitness and lifestyle company also provided an optimistic outlook for fiscal 2025, further fueling the positive market response.
Life Time's preliminary results for the fourth quarter show an estimated revenue increase of 18.5% to between $661 million and $663 million, surpassing the consensus estimate of $643.7 million. Net income for the quarter is expected to rise by 35% to between $31 million and $33 million. For the full year, the company anticipates an 18.2% increase in total revenue to between $2,619 million and $2,621 million, with net income nearly doubling by 98.4% to between $150 million and $152 million.
The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter are estimated to grow by 27.1% to between $174 million and $176 million, and by 25.7% to between $674 million and $676 million for the full year. These figures also outperformed analyst expectations.
Looking ahead to fiscal 2025, Life Time expects to continue its growth trajectory with total revenue projected to increase by 12.2% to between $2,910 million and $2,970 million. Net income is forecasted to surge by 75.8% to between $262 million and $269 million, and adjusted EBITDA is anticipated to rise by 14.1% to between $760 million and $780 million. These projections are at the higher end of Wall Street's forecasts, which had anticipated fiscal 2025 earnings per share (EPS) of $1.04 on revenue of $2.88 billion.
The company attributes its strong performance to high member engagement and retention, growth in memberships and membership dues revenue, and efficient operating models, which have all contributed to expanding margins. In addition to financial growth, Life Time plans to open 10-12 new centers and maintain a net debt to adjusted EBITDA leverage ratio at or below 2.25 times.
Life Time's leadership expressed confidence in building upon the success of 2024, citing record levels of member engagement and retention as key drivers of their growth strategy. The full fiscal year 2024 results are scheduled to be released on February 27, 2025.
The company's stock movement today reflects investor enthusiasm for Life Time's robust preliminary earnings and the positive outlook for the coming year, signaling strong confidence in the company's ability to sustain its growth momentum.
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