Is LTH's EPS growth sustainable beyond 2024?

Life Time Group's (LTH) EPS growth appears to be sustainable beyond 2024, based on several key factors:

1. Consistent Revenue Growth: LTH has demonstrated a strong track record of revenue growth, with an 18.7% increase in total revenue for Q4 2024, reaching $663.28 million. For the full year, revenue increased by 18.2% to $2.621 billion. This consistent growth in revenue is a positive indicator of the company's ability to sustain its EPS growth.

2. Strategic Expansion Plans: The company has outlined plans for future expansion, including the opening of 10 to 12 clubs in 2025. This strategic growth initiative is likely to contribute to continued revenue and EPS growth.
3. Financial Health and Efficiency: LTH has shown effective debt management, with a net debt leverage ratio of 2.28 times. The company's financial position and operational efficiency, as evidenced by the increase in adjusted EBITDA and margin improvement, provide a solid foundation for sustaining EPS growth.
4. Market Trends and Demand: The company has capitalized on the growing popularity of pickleball, expanding its offerings and facilities to meet the increasing demand. This trend is likely to continue, supporting the company's growth trajectory.
5. Optimistic Outlook: LTH's preliminary estimated financial results for Q4 and the full year of fiscal 2024 exceeded Wall Street's expectations, leading to a positive market response. The company's optimistic outlook for fiscal 2025 further suggests that EPS growth may be sustainable beyond 2024.

In conclusion, considering LTH's consistent revenue growth, strategic expansion plans, strong financial health, alignment with market trends, and optimistic outlook, the company's EPS growth is likely to be sustainable beyond 2024.