Planet Fitness (PLNT) Q2 Earnings Estimates, Revenue Lag

0

Planet Fitness, Inc. PLNT released its second quarter 2022 results, with earnings in line with Zacks’ consensus estimate and missing revenue. However, the measures have increased year on year.

Following the announcement, the company’s shares fell 5.7% during August 9 trading hours. Negative investor sentiments were seen as management raised concerns about a challenging operating environment due to the lingering impacts of COVID and inflationary pressures.

Profit and revenue discussion

During the second quarter, the company reported adjusted earnings per share (EPS) of 38 cents, in line with Zacks’ consensus estimate. In the prior year quarter, the company reported adjusted earnings of 21 cents per share.

Planet Fitness, Inc. Price, Consensus, and EPS Surprise

Planet Fitness, Inc. price-consensus-eps-surprise-chart | Quote from Planet Fitness, Inc.

Quarterly revenue of $224.4 million was below the consensus mark of $231 million. However, revenue jumped 63.5% from year-ago quarter levels, driven by strong performance in the Franchise, Company-Owned Stores and Equipment segments. During the quarter under review, same-store sales across the network increased 13.6% year-over-year, compared to 15.9% growth in the prior quarter.

Total adjusted EBITDA at the end of the second quarter was $89.9 million, compared to $55.6 million in the prior year quarter.

Sector performance

During the second quarter of 2022, Franchise segment revenue was $82.5 million, up 13.3% year-over-year. The increase was driven by a $6.2 million increase in franchise royalty revenue, a $1.6 million gain in National Advertising Fund (“NAF”) revenue and an increase of 1. $7 million in investment income.

Franchise segment EBITDA was $54.3 million, compared to $51.8 million in the prior year quarter.

Revenue for the company-owned store segment in the second quarter was $60.9 million, compared to $40.6 million in the year-ago quarter. The increase is mainly due to higher same-store sales and new store openings. The acquisition of 114 stores as part of the Sunshine Fitness takeover contributed $49.5 million to segment revenue. Segment EBITDA totaled $39.5 million, compared to $10.4 million in the prior year quarter.

In the equipment segment, revenue totaled $40.4 million compared to $23.8 million in the prior year quarter. The increase was primarily due to higher equipment sales to new and existing franchise-owned stores. Equipment segment EBITDA was $10.2 million, compared to $5.6 million in the prior year quarter.

Other financial details

As of June 30, 2022, cash and cash equivalents totaled $383.5 million, compared to $471.2 million as of March 31, 2022. Long-term debt (net of current maturities) was 1,985. $7 million at the end of the second quarter of 2022, compared to $1,989.5 million. million at the end of the previous quarter.

Outlook 2022

For 2022, the company continues to expect revenue to increase by approximately 50% over 2021 levels. Adjusted EBITDA for 2022 is expected to grow in the high 50% range, while adjusted net income be in the low 90% range from 2021 levels. The company expects Adjusted EPS to increase by approximately 80% from 2021 levels. acquisition of Sunshine Fitness and that there is no material impact from the COVID-19 pandemic.

Zacks Ranking and Stocks to Consider

Planet Fitness currently carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some higher ranked stocks in the consumer discretionary sector are Playa Hotels & Resorts SA PLYA, Marriott International, Inc. TUE and Choice Hotels International, Inc. CHH.

Playa Hotels boasts a Zacks No. 1 ranking. PLYA has a last four quarter earnings surprise of minus 8.8% on average. The stock has gained 1.5% over the past year.

Zacks consensus estimate for PLYA’s current year sales and EPS indicates an increase of 54.2% and 183.33%, respectively, over reported levels in the prior year period .

Marriott carries a Zacks rank #2 (purchase). MAR has an earnings surprise for the last four quarters of 18.6% on average. The stock is up 15.1% over the past year.

Zacks consensus estimate for MAR’s current year sales and EPS indicate growth of 46.1% and 101.6%, respectively, from reported levels in the prior year period .

Choice Hotels carries a No. 2 Zacks rank. CHH has a trailing four-quarter earnings surprise of 11.2% on average. The stock is down 5.9% over the past year.

Zacks consensus estimate for CHH’s current year sales and EPS indicates growth of 18.1% and 19.4%, respectively, from reported levels in the prior year period .

Benefiting from the Metaverse, the 3rd Internet Boom (Free Report):

Get Zacks’ special report revealing the top profit-making games for the next evolution of the internet. Early investors still have time to approach the “ground floor” of this $30 trillion opportunity. You will discover 5 surprising actions to help you cash in.

Download the report for FREE today >>

Click to get this free report

Marriott International, Inc. (MAR): Free Inventory Analysis Report

Choice Hotels International, Inc. (CHH): Free Stock Analysis Report

Planet Fitness, Inc. (PLNT): Free Stock Analysis Report

Playa Hotels & Resorts NV (PLYA): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.