NEW YORK - Planet Fitness Inc . (NYSE:PLNT) shares surged 11.1% in pre-market trading Tuesday after the gym chain reported second-quarter results that beat Wall Street estimates on both the top and bottom lines.
The Hampton, New Hampshire-based company posted adjusted earnings per share of $0.71, surpassing the analyst consensus of $0.66. Revenue rose 5.1% year-over-year to $300.9 million, exceeding expectations of $290.18 million.
System-wide same-store sales increased 4.2% compared to the prior year period. The company opened 18 new Planet Fitness locations during the quarter, bringing its total store count to 2,617 as of June 30.
"Since I stepped into the CEO role in June, I have become even more confident and excited about my decision to join such an iconic brand, supported by a strong foundation and team, a solid base of approximately 100 franchisees, and approximately 19.7 million members," said Colleen Keating, Chief Executive Officer.
Planet Fitness reiterated its full-year 2024 outlook, including expectations for system-wide same-store sales growth of 3% to 5% and revenue growth of 4% to 6%.
The company also noted it completed an $800 million debt refinancing transaction and executed a $280 million accelerated share repurchase program during the second quarter.
With its asset-light, highly franchised business model continuing to demonstrate strength, Planet Fitness appears well-positioned to capitalize on growth opportunities both domestically and internationally. The stock's sharp rise indicates investors are reacting positively to the company's solid quarterly performance and reaffirmed guidance.
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