Planet Fitness Inc. reported impressive third-quarter results, surpassing both profit and revenue expectations. The fitness center operator’s same-store sales also met expectations, indicating a strong performance overall. However, despite these positive developments, the company’s stock faced a slight decline of over 2% in premarket trading.
Increased Net Income and Adjusted Earnings Per Share
Net income for the third quarter saw a significant rise to $39.1 million, or 46 cents per share, showing substantial growth compared to the year-ago period’s $26.9 million, or 32 cents per share. Adjusted earnings per share, excluding nonrecurring items, came in at an impressive 59 cents, surpassing the FactSet consensus of 55 cents.
Robust Revenue Growth
Total revenue demonstrated solid growth, rising by 13.6% to reach $277.6 million. This surpassed the FactSet consensus of $268.2 million, further highlighting Planet Fitness Inc.’s positive performance during the third quarter.
Steady Same-Store Sales Growth
The company’s same-store sales, which represent sales from stores open for more than a year, increased by 8.4%, aligning precisely with the FactSet consensus. This strong growth indicates sustained customer loyalty and engagement within the fitness center operator’s existing locations.
Quest for a New CEO
Following the recent departure of long-time CEO Chris Rondeau in mid-September, Planet Fitness Inc. is actively searching for a suitable replacement to fill the position permanently. This move aims to ensure effective leadership and continued success for the company moving forward.
Positive Outlook for 2023
Planet Fitness Inc. has raised its growth guidance for both revenue and adjusted EPS for 2023. The company now expects revenue to grow by 14%, up from the previous estimate of 12%. Additionally, the revised projection for adjusted EPS growth is 35%, compared to the previous forecast of 34%. The company maintains its same-store sales growth outlook in the high single-digit percentage range.
Over the past three months, Planet Fitness Inc.’s stock has experienced a decline of 10.7%. In contrast, the S&P 500 has observed a comparatively smaller decrease of 3.4%.
Planet Fitness Inc. continues to demonstrate resilience and success within the competitive fitness industry. With strong financial results and a positive outlook for the future, the company remains well-positioned for continued growth and industry leadership.