We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Planet Fitness (PLNT) Q1 Earnings Beat, '24 Outlook Trimmed
Read MoreHide Full Article
Planet Fitness, Inc. (PLNT - Free Report) reported first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate, but revenues came in line with the same. However, both metrics increased year over year.
Planet Fitness saw a membership increase of around 19.6 million. However, it encountered challenges such as shifting consumer priorities toward saving money, concerns about COVID infections and other illness. As a result, management trimmed its full-year outlook. Despite these obstacles, interim CEO Craig Benson emphasized PLNT’s focus on controllable factors, like advancing the new franchisee growth model and supporting franchisees to deliver value for shareholders.
The gym chain will raise the monthly price of its classic pass to $15 from $10 starting this summer. Therefore, despite a trimmed outlook, on May 9, the company’s shares rose 5.6% as it revealed its first price hike in thirty years.
Earnings & Revenue Discussion
Adjusted net income per share reached 53 cents, surpassing the Zacks Consensus Estimate of 49 cents by 8.2%. In the prior-year quarter, the company reported net income per share of 41 cents.
Quarterly revenues totaled $248 million. The top line improved 1.4% year over year, driven by system-wide same-store sales growth of 29.3% year over year.
Adjusted EBITDA was $104.6 million compared with $88 million reported in the year-ago quarter.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Franchise: Revenues of $104 million jumped 12.2% on a year-over-year basis. Our model predicted the metric to increase 18.1% from the prior-year levels to $109.5 million. The upside was driven by a rise of $7.8 million stemming from an uptick in royalty revenues.
EBITDA was $76.3 million, up 17.9% year over year.
Corporate-owned Stores: Revenues of this segment amounted to $122.4 million, up 15.6% from the reported value of $105.9 million in the year-ago quarter. Our anticipated value was $122.3 million.
The uptick can primarily be attributed to an increase of 6.2% in corporate-owned store same-store sales and an additional $2.4 million from the acquisition of four stores in Florida.
EBITDA totaled $42.1 million, up 25.6% year over year.
Equipment: Segmental revenues totaled $21.6 million, down 8.6% year over year. We expected the metric to be $25.5 million.
The downside was due to lower revenues from equipment sales to new franchisee-owned stores.
EBITDA was $4.8 million, down 14.6% year over year.
Other Financial Details
As of Mar 31, cash and cash equivalents totaled $301.7 million compared with $275.8 million as of Dec 31, 2023. Long-term debt (net of current maturities) of $1.96 billion was flat compared with Dec 31, 2023.
2024 Outlook
Management now expects revenues to increase in the 4-6% range over 2023 levels compared with the prior estimate of 6-7% rise. System-wide same-store sales are still suggested in the 3-5% band, down from the previous projection of 5-6% growth. The company continues to anticipate new equipment placements to be between approximately 120 and 130 in franchisee-owned locations.
Adjusted EBITDA is estimated to increase in the 7-9% range, down from the prior estimate of 10-11% growth. Adjusted net income is envisioned in the 6-8% range over 2023 levels compared with the earlier prediction of 9-10%. Management forecasts adjusted earnings per share (EPS) to increase in the 7-9% range over 2023 levels, down from the earlier estimate of 10-11% growth. It anticipates adjusted shares outstanding to be approximately 88 million.
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The top and bottom lines declined on a year-over-year basis.
BYD’s performance was impacted by January's severe winter weather in the Midwest and South, and a softer Las Vegas local market.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. It also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and bottom lines declined year over year. POOL’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
POOL raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Planet Fitness (PLNT) Q1 Earnings Beat, '24 Outlook Trimmed
Planet Fitness, Inc. (PLNT - Free Report) reported first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate, but revenues came in line with the same. However, both metrics increased year over year.
Planet Fitness saw a membership increase of around 19.6 million. However, it encountered challenges such as shifting consumer priorities toward saving money, concerns about COVID infections and other illness. As a result, management trimmed its full-year outlook. Despite these obstacles, interim CEO Craig Benson emphasized PLNT’s focus on controllable factors, like advancing the new franchisee growth model and supporting franchisees to deliver value for shareholders.
The gym chain will raise the monthly price of its classic pass to $15 from $10 starting this summer. Therefore, despite a trimmed outlook, on May 9, the company’s shares rose 5.6% as it revealed its first price hike in thirty years.
Earnings & Revenue Discussion
Adjusted net income per share reached 53 cents, surpassing the Zacks Consensus Estimate of 49 cents by 8.2%. In the prior-year quarter, the company reported net income per share of 41 cents.
Quarterly revenues totaled $248 million. The top line improved 1.4% year over year, driven by system-wide same-store sales growth of 29.3% year over year.
Adjusted EBITDA was $104.6 million compared with $88 million reported in the year-ago quarter.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. Quote
Segmental Performance
Franchise: Revenues of $104 million jumped 12.2% on a year-over-year basis. Our model predicted the metric to increase 18.1% from the prior-year levels to $109.5 million. The upside was driven by a rise of $7.8 million stemming from an uptick in royalty revenues.
EBITDA was $76.3 million, up 17.9% year over year.
Corporate-owned Stores: Revenues of this segment amounted to $122.4 million, up 15.6% from the reported value of $105.9 million in the year-ago quarter. Our anticipated value was $122.3 million.
The uptick can primarily be attributed to an increase of 6.2% in corporate-owned store same-store sales and an additional $2.4 million from the acquisition of four stores in Florida.
EBITDA totaled $42.1 million, up 25.6% year over year.
Equipment: Segmental revenues totaled $21.6 million, down 8.6% year over year. We expected the metric to be $25.5 million.
The downside was due to lower revenues from equipment sales to new franchisee-owned stores.
EBITDA was $4.8 million, down 14.6% year over year.
Other Financial Details
As of Mar 31, cash and cash equivalents totaled $301.7 million compared with $275.8 million as of Dec 31, 2023. Long-term debt (net of current maturities) of $1.96 billion was flat compared with Dec 31, 2023.
2024 Outlook
Management now expects revenues to increase in the 4-6% range over 2023 levels compared with the prior estimate of 6-7% rise. System-wide same-store sales are still suggested in the 3-5% band, down from the previous projection of 5-6% growth. The company continues to anticipate new equipment placements to be between approximately 120 and 130 in franchisee-owned locations.
Adjusted EBITDA is estimated to increase in the 7-9% range, down from the prior estimate of 10-11% growth. Adjusted net income is envisioned in the 6-8% range over 2023 levels compared with the earlier prediction of 9-10%. Management forecasts adjusted earnings per share (EPS) to increase in the 7-9% range over 2023 levels, down from the earlier estimate of 10-11% growth. It anticipates adjusted shares outstanding to be approximately 88 million.
Zacks Rank & Peer Releases
Planet Fitness currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The top and bottom lines declined on a year-over-year basis.
BYD’s performance was impacted by January's severe winter weather in the Midwest and South, and a softer Las Vegas local market.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. It also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and bottom lines declined year over year. POOL’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
POOL raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.