Planet Fitness, Inc. (PLNT - Free Report) reported mixed first-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues marginally missed the same. However, both the top and bottom lines increased on a year-over-year basis. Results in the quarter were driven by robust system-wide same-store sales growth as well as 65 new store openings.
Adjusted earnings came in at 35 cents per share, which outpaced the consensus estimate by a penny. The bottom line also increased 29.6% on a year-over-year basis. Notably, this marked the company’s seventh straight quarter of earnings beat.
Meanwhile, revenues of $148.8 million marginally lagged the Zacks Consensus Estimate of $153 million but surged 22.7% on a year-over-year basis. The top line was driven by a sharp increase in the franchise, corporate-owned stores and equipment revenues. System-wide same-store sales rose 10.2%.
Franchise revenues increased 20.4% to $65.8 million, whereas the Corporate-owned Stores segment’s revenues surged 16.3% year over year to $38 million. The Equipment segment revenues rose 32.3% to $45 million owing to a rise in equipment sales to new stores.
Moreover, EBITDA at the Franchise segment improved 29.1% to $47.4 million owing to a rise in royalties from new franchised stores. At the Corporate-owned stores and Equipment segments EBITDA increased 27.9% and 39.3% to $15.6 million and $10.4 million, respectively.
Total adjusted EBITDA at the end of the first quarter rose to $63.4 million from $48.8 million.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Other Financial Details
As of Mar 31, 2019, cash and cash equivalents totaled $336 million compared with $289.4 million as of Dec 31, 2018. Long-term debt, net of current maturities, summed $ 1,158.5 million at the end of first-quarter 2019 compared with $1,160.1 million at 2018 end.
2019 Outlook
Planet Fitness continues to expect revenue growth of nearly 15% year over year in 2019. System-wide same-store sales are likely to increase in high-single digits. The company expects adjusted net income and earnings per share to increase 18% and 25%, respectively.
Zacks Rank & Other Key Picks
Planet Fitness currently carries a Zacks Rank #2 (Buy). Other favorably-ranked stocks worth considering in the same space include Lindblad Expeditions Holdings, Inc. (LIND - Free Report) , The Marcus Corporation (MCS - Free Report) and SeaWorld Entertainment, Inc. . While Lindblad Expeditions Holdings and Marcus sport a Zacks Rank #1 (Strong Buy), SeaWorld Entertainment holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lindblad Expeditions Holdings current-year earnings are likely to grow by 14.2%.
The Marcus reported better-than-expected earnings in each of the trailing four quarters, with the average being 34.7%.
SeaWorld Entertainment earnings for the current year are likely to grow by 140.4%.
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Planet Fitness, Inc. (PLNT - Free Report) reported mixed first-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues marginally missed the same. However, both the top and bottom lines increased on a year-over-year basis. Results in the quarter were driven by robust system-wide same-store sales growth as well as 65 new store openings.
Adjusted earnings came in at 35 cents per share, which outpaced the consensus estimate by a penny. The bottom line also increased 29.6% on a year-over-year basis. Notably, this marked the company’s seventh straight quarter of earnings beat.
Meanwhile, revenues of $148.8 million marginally lagged the Zacks Consensus Estimate of $153 million but surged 22.7% on a year-over-year basis. The top line was driven by a sharp increase in the franchise, corporate-owned stores and equipment revenues. System-wide same-store sales rose 10.2%.
Franchise revenues increased 20.4% to $65.8 million, whereas the Corporate-owned Stores segment’s revenues surged 16.3% year over year to $38 million. The Equipment segment revenues rose 32.3% to $45 million owing to a rise in equipment sales to new stores.
Moreover, EBITDA at the Franchise segment improved 29.1% to $47.4 million owing to a rise in royalties from new franchised stores. At the Corporate-owned stores and Equipment segments EBITDA increased 27.9% and 39.3% to $15.6 million and $10.4 million, respectively.
Total adjusted EBITDA at the end of the first quarter rose to $63.4 million from $48.8 million.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Other Financial Details
As of Mar 31, 2019, cash and cash equivalents totaled $336 million compared with $289.4 million as of Dec 31, 2018. Long-term debt, net of current maturities, summed $ 1,158.5 million at the end of first-quarter 2019 compared with $1,160.1 million at 2018 end.
2019 Outlook
Planet Fitness continues to expect revenue growth of nearly 15% year over year in 2019. System-wide same-store sales are likely to increase in high-single digits. The company expects adjusted net income and earnings per share to increase 18% and 25%, respectively.
Zacks Rank & Other Key Picks
Planet Fitness currently carries a Zacks Rank #2 (Buy). Other favorably-ranked stocks worth considering in the same space include Lindblad Expeditions Holdings, Inc. (LIND - Free Report) , The Marcus Corporation (MCS - Free Report) and SeaWorld Entertainment, Inc. . While Lindblad Expeditions Holdings and Marcus sport a Zacks Rank #1 (Strong Buy), SeaWorld Entertainment holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lindblad Expeditions Holdings current-year earnings are likely to grow by 14.2%.
The Marcus reported better-than-expected earnings in each of the trailing four quarters, with the average being 34.7%.
SeaWorld Entertainment earnings for the current year are likely to grow by 140.4%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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