Planet Fitness Muscles Up On Strong Q3 After Weight Watchers Pops
Planet Fitness (PLNT) jumped in after-hours trade Tuesday, after the company topped expectations for the third quarter on both the top and bottom lines and guided full-year results above the consensus.
XAutoplay: On | OffThe New Hampshire-based gym operator saw adjusted EPS climb 19% to 19 cents, as revenue grew 12% to $97.5 million. Analyst consensus was for earnings per share of 16 cents on revenue of $94 million, according to Zacks Investment Research.
“The strong top- and bottom-line momentum we generated during the first half of the year carried into the third quarter, highlighted by a 9.3% increase in systemwide same-store sales,” CEO Christopher Rondeau said in statement.
Planet Fitness now expects full-year EPS of 80-82 cents on revenue of $425 million-$430 million, both above Wall Street views for EPS of 78 cents on revenue of $416 million, up from prior guidance for 76-78 cents and $409 million-$415 million. Same-store sales are now seen growing 9.5%-10% vs. a prior view for 8%-9% growth.
The IBD 50 stock jumped 6.3% in late trade on the stock market today, after closing down 5.5% at 25.59 in the regular session. Meanwhile, Weight Watchers (WTW) soared 13.5% after beating quarterly forecasts late Monday.
IBD’S TAKE: The IBD 50 is a list of top growth stocks based on various fundamental and technical factors, including earnings and sales growth.
By segment, Planet Fitness reported these year-over-year revenue gains in Q3:
- Franchise revenue rose 30.6% to $35.6 million.
- Corporate-owned stores revenue increased 7.1% to $28.6 million.
- Equipment revenue grew. 8% to $33.4 million.
The chain of gyms has grown on its formula that embraces the not-so-perfect body — what the company calls the “Judgement Free Zone.”