Life Time Fitness raised its outlook after announcing Thursday that its second-quarter revenue grew 10.5 percent and membership increased more than 11 percent. However, quarterly net income posted a slight decrease.
Net income was down 7.5 percent to $18.3 million, or 46 cents per share. This compares to net income of $19.8 million, or 50 cents per share last year.
Second-quarter earnings still beat analyst estimates. Analysts were expecting earnings of 41 cents a share on revenue of $212 million, according to Reuters estimates.
Total revenue for the quarter ended June 30 totaled $212.5 million.
The company now expects earnings of $1.65 to $1.75 per share for the fiscal year, up from its previous outlook of $1.55 to $1.70 per share. Net income is now expected to be between $67 million and $71 million, up from earlier estimates of $62 million to $68 million. Revenue for the year is expected to be in the range of $830 million to $860 million.
Chanhassen-based Life Time cited increases in membership for the favorable quarterly results. Memberships increased 11.1 percent to 608,281 members, compared to 547,497 members at the end of last year’s second quarter. The company opened three new centers this year.
CEO Bahram Akradi said that member retention remains a priority for the company.
Shares of Life Time’s stock were up more than 17 percent to$27.64 per share in late afternoon trading.
The company’s second-quarter results showed improvement from the first quarter when Life Time posted a 13 percent decrease in net income.
Life Time operates 83 multi-use sports and athletic, professional fitness, family recreation, and resort and spa centers in 18 states—including Minnesota. The company is among the state’s 50 largest public companies based on revenue.
