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Planet Fitness (PLNT) Q2 Earnings Miss Estimates, Fall Y/Y

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Planet Fitness, Inc. (PLNT - Free Report) reported dismal second-quarter 2020 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Moreover, the top and the bottom lines declined sharply year over year owing to the coronavirus pandemic. Following the results, shares of the company fell 3.1% during after-hour trading on Aug 4.

Owing to the uncertainty tied to the crisis, the company has withdrawn its 2020 guidance.

Quarterly Details

The company reported adjusted loss per share of 32 cents, wider than the Zacks Consensus Estimate of a loss of 17 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 45 cents.

Planet Fitness, Inc. Price and EPS Surprise

 

Planet Fitness, Inc. Price and EPS Surprise

Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote

Quarterly revenues of $40.2 million missed the consensus mark of $43.3 million by 2.5%. The top line also declined 77.9% from the year-ago quarter primarily due to the dismal performance across Franchise, Corporate-owned Stores and Equipment segments.

Franchise revenues fell 70.8% year over year to $21 million. The Corporate-owned Stores segment’s revenues declined 76.3% year over year to $9.4 million. In the Equipment segment, revenues declined 86% year over year to $9.8 million owing to lower equipment sales to new and existing franchisee-owned stores.

Moreover, EBITDA in the Franchise segment declined 92.9% year over year to $3.5 million. The decline was primarily attributed to temporary shutdowns owing to COVID-19. At the Corporate-owned stores segment, EBITDA fell 135% year over year to ($6.3) million. EBITDA in the Equipment segment declined 92.2% year over year to $1.3 million.

Total adjusted EBITDA at the end of the second quarter deteriorated to ($9.3) million from $76.5 million in the year-ago quarter.

Other Financial Details

As of Jun 30, 2020, cash and cash equivalents totaled $423.6 million compared with $436.3 million as of Dec 31, 2019. Long-term debt, net of current maturities, amounted to $1,682 million at the end of second-quarter 2020 compared with $1,687.5 million at 2019-end.

Zacks Rank & Stocks to Consider

Planet Fitness currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. (MCRI - Free Report) , Bluegreen Vacations Corporation and Camping World Holdings, Inc. (CWH - Free Report) .  Monarch Casino sports a Zacks Rank #1 (Strong Buy), while Bluegreen Vacations and Camping World carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings in 2021 for Monarch Casino, Bluegreen Vacations and Camping World are expected to surge 1033.4%, 208.8% and 75.8%, respectively.

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