UPDATE 2-Life Time Fitness Q1 beats market view, shares surge

(Recasts, adds analyst comments, share movement)

By Swagata Gupta

BANGALORE, April 24 (Reuters) - Fitness club operator Life Time Fitness Inc (LTM.N: Quote, Profile, Research) reported first-quarter results above market estimates as revenue surged on an expanded membership base, and raised its 2008 earnings outlook, sending its shares up 16 percent.

The company, which operates cafes and provides personalized training and spa services, said memberships rose 10 percent to 521,177 in the quarter.

"The company provides a premium line of facilities at a fairly mid-market pricing, a strategy that ensures that they get a large membership base," Oppenheimer & Co analyst Vivian Ma said.

For the first quarter, Life Time Fitness posted earnings of $17.4 million, or 44 cents a share, up from $14.1 million, or 38 cents a share, a year earlier.

Total revenue rose about 21 percent to $184.5 million, driven primarily by growth in membership dues and in-center revenue.

Analysts on average had expected the company to earn 42 cents a share, excluding exceptional items, on revenue of $183.3 million, according to Reuters Estimates.

The Chanhassen, Minnesota-based company, which operates 71 centers in 16 U.S. states, raised its 2008 earnings outlook by a penny to a range of $2.06 to $2.09 a share.