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High Royalty Rate to Aid Planet Fitness (PLNT) in Q2 Earnings
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Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report second-quarter 2019 results on Aug 6, after the market closes. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 2.9%. Also, it delivered average four-quarter positive earnings surprise of 8.9%.
How Are Estimates Faring up in Q2?
The Zacks Consensus Estimate for second-quarter earnings is pegged at 41 cents, indicating 20.6% growth from the prior-year quarter’s reported figure. Over the past 30 days, the company’s earnings have witnessed no revisions, reflecting analysts’ concern surrounding the stock’s limited upside potential. For revenues, the consensus mark stands at nearly $167.8 million, mirroring a 19.4% increase from the year-ago quarter’s reported number.
Factors at Play
The company’s revenues in the second quarter are likely to have gained from increased comparable sales. Moreover, its consistent focus on partnership and international expansion to drive growth is an added positive. Planet Fitness has been consistently expanding presence through franchise agreements. While the majority of revenue growth from expansion is expected over the long term, the second quarter is likely to have borne the fruits of the company’s efforts to fortify the top line.
Meanwhile, Planet Fitness’ same-store sales growth is impressive. The company posted the 41st straight quarter of positive same-store sales in first-quarter 2019. We believe that the upside trend has continued in the second quarter of 2019.
Apart from these, increase in net member and higher average royalty rate have been driving comparable sales higher, whereas prudent pricing is likely to have driven earnings in the to-be-reported quarter.
What Does the Zacks Model Unveil?
Our proven model doesn’t predict that Planet Fitness is likely to beat earnings estimates this quarter. This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a few stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the second quarter:
SeaWorld presently has an Earnings ESP of +11.01% and a Zacks Rank #2. The company is scheduled to report quarterly numbers on Aug 6.
Callaway Golf currently sports a Zacks Rank #1 and is supposed to report quarterly results on Aug 8. The company’s Earnings ESP is +2.97%.
Wynn Resorts (WYNN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.65% at present.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
High Royalty Rate to Aid Planet Fitness (PLNT) in Q2 Earnings
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report second-quarter 2019 results on Aug 6, after the market closes. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 2.9%. Also, it delivered average four-quarter positive earnings surprise of 8.9%.
How Are Estimates Faring up in Q2?
The Zacks Consensus Estimate for second-quarter earnings is pegged at 41 cents, indicating 20.6% growth from the prior-year quarter’s reported figure. Over the past 30 days, the company’s earnings have witnessed no revisions, reflecting analysts’ concern surrounding the stock’s limited upside potential. For revenues, the consensus mark stands at nearly $167.8 million, mirroring a 19.4% increase from the year-ago quarter’s reported number.
Factors at Play
The company’s revenues in the second quarter are likely to have gained from increased comparable sales. Moreover, its consistent focus on partnership and international expansion to drive growth is an added positive. Planet Fitness has been consistently expanding presence through franchise agreements. While the majority of revenue growth from expansion is expected over the long term, the second quarter is likely to have borne the fruits of the company’s efforts to fortify the top line.
Meanwhile, Planet Fitness’ same-store sales growth is impressive. The company posted the 41st straight quarter of positive same-store sales in first-quarter 2019. We believe that the upside trend has continued in the second quarter of 2019.
Apart from these, increase in net member and higher average royalty rate have been driving comparable sales higher, whereas prudent pricing is likely to have driven earnings in the to-be-reported quarter.
What Does the Zacks Model Unveil?
Our proven model doesn’t predict that Planet Fitness is likely to beat earnings estimates this quarter. This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Planet Fitness has an Earnings ESP of 0.00% and a Zacks Rank #2, which make surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Planet Fitness, Inc. Price and EPS Surprise
Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote
Stocks With Favorable Combinations
Here are a few stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the second quarter:
SeaWorld presently has an Earnings ESP of +11.01% and a Zacks Rank #2. The company is scheduled to report quarterly numbers on Aug 6.
Callaway Golf currently sports a Zacks Rank #1 and is supposed to report quarterly results on Aug 8. The company’s Earnings ESP is +2.97%.
Wynn Resorts (WYNN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.65% at present.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>