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Planet Fitness stock rises as Q3 earnings top estimates

Published 11/07/2024, 06:37 AM
PLNT
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NEW YORK - Planet Fitness, Inc. (NYSE:PLNT) reported better-than-expected third-quarter results on Thursday, sending its shares up 3% in after-hours trading.

The fitness center operator posted adjusted earnings per share of $0.64, surpassing analyst estimates of $0.57. Revenue for the quarter came in at $292.2 million, beating the consensus forecast of $283.79 million and representing a 5.3% increase YoY.

Planet Fitness saw system-wide same club sales growth of 4.3% in Q3. The company opened 21 new clubs during the period, bringing its total to 2,637 locations as of September 30.

"We delivered solid results in the quarter, including more than 5 percent revenue growth, approximately 3 percent net income growth and approximately 10 percent Adjusted EBITDA growth, and are raising our outlook for certain key financial targets," said CEO Colleen Keating.

The company raised its full-year 2024 guidance, now expecting revenue growth of 8-9%, up from its previous forecast of 4-6%. It also increased its outlook for system-wide same club sales growth to 4-5%, from 3-5% previously.

Planet Fitness completed a $280 million accelerated share repurchase program in September and initiated a new $500 million share repurchase authorization.

The company's stock rose 3% following the earnings release, suggesting investors responded positively to the results and improved outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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