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.
What's in the Offing for Planet Fitness' (PLNT) Q4 Earnings?
Read MoreHide Full Article
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 22, before the opening bell. In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 7.3% and 3.7%, respectively. Also, both metrics increased on a year-over-year basis.
It posted better-than-expected earnings in three of the trailing four quarters and missed on the other one occasion, the average surprise being 7.4%.
Q4 Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at 58 cents in the past 30 days. The estimated figure indicates an increase of 9.4% from 53 cents per share reported in the year-ago quarter.
The consensus mark for revenues stands at $282.3 million, suggesting growth of 0.4% from the year-ago reported figure of $281.3 million.
Factors to Note
Planet Fitness’ fourth-quarter earnings and revenues are expected to increase year over year, driven by a solid increase in membership and global growth in store counts. Also, strategic partnerships, customer acquisition through marketing transition and digitalization initiatives are likely to have aided the company’s performance in the to-be-reported quarter. Per our model, fourth-quarter total Franchise and Corporate-Owned Stores revenues are expected to increase year over year by 12.6% and 4.8% to $97.1 million and $105.2 million, respectively.
The company's management team spent a significant part of the year 2023 developing a new growth model. The objective is to enhance returns from new stores without significantly impacting its P&L. The plan focuses on reducing capital requirements for opening and operating Planet Fitness franchises. We expect total operating expenses to drop 2.4% year over year to $211.8 million.
Following solid sales during its reequipped promotions year-to-date, PLNT anticipates lighter fourth-quarter reequipped sales as franchisees prioritize investing in new stores. For the to-be-reported quarter, our model predicts total Equipment revenues to decline 15.7% year over year to $79.7 million.
The inflation concerns remain a potent headwind. Increase in materials, shipping, equipment and labor costs are likely to have negatively impacted the company’s margin in the to-be-reported quarter. We expect store operations expenses to increase 5.7% year over year to $60.9 million.
What Our Model Indicates
Our proven model conclusively predicts an earnings beat for Planet Fitness this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Earnings ESP for Planet Fitness is +3.77%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.
Six Flags Entertainment Corporation (SIX - Free Report) has an Earnings ESP of +21.85% and a Zacks Rank of 2 at present.
SIX’s earnings for the to-be-reported quarter are expected to decline 15.6% from the prior-year reported level. It posted better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, the negative surprise being 9.3%, on average.
Academy Sports and Outdoors, Inc. (ASO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3 at present.
ASO’s earnings for the to-be-reported quarter are expected to increase 13.2% from the prior-year reported level. It posted better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the negative surprise being 4.7%, on average.
NIKE, Inc. (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank of 3 at present.
NKE’s earnings for the to-be-reported quarter are expected to decrease 11.4% from the prior-year reported level. It posted better-than-expected earnings in three of the trailing four quarters and missed on the other one occasion, the average surprise being 25%.
Image: Bigstock
What's in the Offing for Planet Fitness' (PLNT) Q4 Earnings?
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 22, before the opening bell. In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 7.3% and 3.7%, respectively. Also, both metrics increased on a year-over-year basis.
It posted better-than-expected earnings in three of the trailing four quarters and missed on the other one occasion, the average surprise being 7.4%.
Q4 Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at 58 cents in the past 30 days. The estimated figure indicates an increase of 9.4% from 53 cents per share reported in the year-ago quarter.
Planet Fitness, Inc. Price and EPS Surprise
Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote
The consensus mark for revenues stands at $282.3 million, suggesting growth of 0.4% from the year-ago reported figure of $281.3 million.
Factors to Note
Planet Fitness’ fourth-quarter earnings and revenues are expected to increase year over year, driven by a solid increase in membership and global growth in store counts. Also, strategic partnerships, customer acquisition through marketing transition and digitalization initiatives are likely to have aided the company’s performance in the to-be-reported quarter. Per our model, fourth-quarter total Franchise and Corporate-Owned Stores revenues are expected to increase year over year by 12.6% and 4.8% to $97.1 million and $105.2 million, respectively.
The company's management team spent a significant part of the year 2023 developing a new growth model. The objective is to enhance returns from new stores without significantly impacting its P&L. The plan focuses on reducing capital requirements for opening and operating Planet Fitness franchises. We expect total operating expenses to drop 2.4% year over year to $211.8 million.
Following solid sales during its reequipped promotions year-to-date, PLNT anticipates lighter fourth-quarter reequipped sales as franchisees prioritize investing in new stores. For the to-be-reported quarter, our model predicts total Equipment revenues to decline 15.7% year over year to $79.7 million.
The inflation concerns remain a potent headwind. Increase in materials, shipping, equipment and labor costs are likely to have negatively impacted the company’s margin in the to-be-reported quarter. We expect store operations expenses to increase 5.7% year over year to $60.9 million.
What Our Model Indicates
Our proven model conclusively predicts an earnings beat for Planet Fitness this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Earnings ESP for Planet Fitness is +3.77%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.
Six Flags Entertainment Corporation (SIX - Free Report) has an Earnings ESP of +21.85% and a Zacks Rank of 2 at present.
SIX’s earnings for the to-be-reported quarter are expected to decline 15.6% from the prior-year reported level. It posted better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, the negative surprise being 9.3%, on average.
Academy Sports and Outdoors, Inc. (ASO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3 at present.
ASO’s earnings for the to-be-reported quarter are expected to increase 13.2% from the prior-year reported level. It posted better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the negative surprise being 4.7%, on average.
NIKE, Inc. (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank of 3 at present.
NKE’s earnings for the to-be-reported quarter are expected to decrease 11.4% from the prior-year reported level. It posted better-than-expected earnings in three of the trailing four quarters and missed on the other one occasion, the average surprise being 25%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.