What Happened?
Shares of entertainment venue operator Lucky Strike (NYSE:LUCK) jumped 2.8% in the afternoon session after the stock's positive momentum continued as the company reported third-quarter financial results that surpassed analyst expectations. The entertainment company announced revenue of $292.3 million and earnings per share of -$0.12, both of which were better than what Wall Street had predicted. Adjusted EBITDA, a measure of profitability, also came in ahead of estimates at $72.65 million. Adding to the positive news, Lucky Strike confirmed its revenue guidance for the full year would remain at the midpoint of $1.29 billion, signaling stability. The strong quarter followed a recent show of confidence from within the company, as a director purchased 1,600 shares just days before the earnings release.
After the initial pop the shares cooled down to $8.16, up 2.6% from previous close.
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What Is The Market Telling Us
Lucky Strike’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 29 days ago when the stock gained 3.6% on the news that the company announced the hiring of Brandon Briggs as its new chief revenue officer. Briggs previously worked as a senior vice president for MSC Cruises and also served as acting CFO for Virgin, bringing extensive experience to the position. In a public comment, Briggs expressed enthusiasm for the company's bold vision and the opportunity to accelerate growth. Lucky Strike Entertainment operated more than 370 locations, including bowling alleys and arcades across the US, under brands like Thunderbowl Lanes, Revel and Roll, and Boomers. The new hire pointed toward a focus on future expansion and revenue generation.
Lucky Strike is down 19.4% since the beginning of the year, and at $8.16 per share, it is trading 36.8% below its 52-week high of $12.91 from February 2025.
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