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Factors Setting the Tone for Planet Fitness (PLNT) Q3 Earnings

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Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report third-quarter 2019 results on Nov 7. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 9.8%.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter earnings is pegged at 35 cents, which calls for a rise from 28 cents reported in the prior-year quarter. In the past 30 days, the company’s earnings estimates have remained stable. The consensus mark for revenues is pegged at $162.5 million, suggesting an increase of 18.9% from the year-ago quarter’s reported figure.

Factors at Play

Planet Fitness’ third-quarter performance is likely to have benefited from robust performance in the franchise, equipment and corporate-owned store segments. The Zacks Consensus Estimate for franchise, equipment and corporate-owned store segment revenues is pegged at $54 million, $56 million and $39.2 million, suggesting year-over-year rise of 28.6%, 20.6% and 10.7%, respectively.

Moreover, higher demand, increase in net member, higher average royalty rate, consistent focus on strategic partnership and international expansion are likely to get reflected in the company’s third-quarter 2019 results.

Planet Fitness, Inc. Price and EPS Surprise

 

 

What Does the Zacks Model Say

Our proven model does not conclusively predict 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. But that's not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Planet Fitness has a Zacks Rank #5 and an Earnings ESP of -1.28%.

Stocks Poised to Beat Earnings Estimates

Here are some 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.

Lululemon Athletica Inc. (LULU - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.54%. You can see the complete list of today’s Zacks #1 Rank stocks here.

International Game Technology PLC (IGT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +20.00%.

Ralph Lauren Corporation (RL - Free Report) has a Zacks Rank #3 and an Earnings ESP of +0.21%.

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