Planet Fitness misses profit and revenue expectations, but provides in-line full-year outlook

Planet Fitness Inc

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Consumer Discretionary : Hotels, Restaurants & Leisure | Small Cap Growth

Company profile

Planet Fitness, Inc. is a franchisor and operator of fitness centers in the United States. The Company operates through three segments: Franchise, Corporate-owned stores, and Equipment. The Franchise segment includes operations related to its franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment primarily includes the sale of equipment to franchisee-owned stores in the United States, Canada and Mexico. Its subsidiaries operate three lines of business, which include licensing and selling franchises, owning and operating fitness centers, and selling fitness-related equipment to franchisee-owned stores. The Company has approximately 2,446 stores in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia.

Planet Fitness misses profit and revenue expectations, but provides in-line full-year outlook

6:49 am ET May 4, 2023 (MarketWatch) Print

Planet Fitness Inc. (PLNT) reported Thursday first-quarter profit and revenue that rose less than expected, but provided an in-line full-year growth outlook, with "all generational groups back to pre-pandemic population penetration levels." The fitness center operator's stock was still inactive in premarket trading. Net income increased to $22.7 million, or 27 cents a share, from $16.5 million, or 19 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 41 cents missed the FactSet consensus of 46 cents. Revenue grew 19.0% to $222.23 million, but was below the FactSet consensus of $238.3 million. "Our business continues to rebound from the impact of COVID-19 shutdowns with more than 50 percent of our U.S. stores opened prior to 2019 back to or above pre-pandemic membership levels, with member growth driving our 9.9 percent increase in system-wide same stores sales," said Chief Executive Officer Chris Rondeau. Same-store sales beat expectations of a 9.5% rise. For 2023, the company expects adjusted EPS growth of 33% to 36%, while the FactSet EPS consensus of $2.21 implies 34.8% growth. The company also expects 2023 revenue to rise 13% to 14%, while the FactSet revenue consensus of $1.07 billion implies 13.8% growth. The stock has gained 3.5% year to date, while the S&P 500 has tacked on 6.5%.

-Tomi Kilgore

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May 04, 2023 06:49 ET (10:49 GMT)