Planet Fitness, Inc.’s (PLNT) share price has plunged 10.7% in the past three months. However, despite the declining trend, the stock has outpaced the Zacks Leisure and Recreation Services industry, the broader Zacks Consumer Discretionary sector and the S&P 500 in the same time frame. The detailed price performance can be studied from the chart below.Image Source: Zacks Investment ResearchThis leading franchisor and operator of fitness centers in the United States is faring well compared to the competitive ...

It has been about a month since the last earnings report for Planet Fitness (PLNT) . Shares have added about 11% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Planet Fitness due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then ...

In the last year, the S&P 500 has climbed 17%. That's a better-than-average gain, historically. But some businesses have fared much better, and investors should take notice of them. In particular, one consumer-facing company has well outperformed the broader index: Its shares have soared by 42% just in the past 12 months (as of Feb. 25). Should you buy this growth stock with $1,000 right now, which would give you about 11 shares at the current price?On solid footingThe growth stock in question is Planet Fit ...

Planet Fitness, Inc. (PLNT) reported stellar fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the results, the company’s shares fell 9.2% during trading hours yesterday. Negative investor sentiment was driven by concerns over the company’s 2025 outlook, which projected revenue and adjusted EBITDA growth of approximately 10 ...

Group 1 - The article discusses the performance of Planet Fitness, Inc. (NYSE: PLNT), highlighting a previous short-term gain of approximately 30% from trading the stock [1] - The company is positioned as a house position, indicating a strong belief in its potential for future returns [1] - The article promotes a blended trading and income approach to enhance savings and retirement timelines for investors [1] Group 2 - The content encourages potential investors to try the service with a money-back guarantee, emphasizing a proven track record of high conviction ideas [2]

Membership and Club Operations - As of December 31, 2024, Planet Fitness had approximately 19.7 million members, with 82% of membership fee payments collected via ACH direct debit[22]. - The company operated 2,722 clubs system-wide as of December 31, 2024, including 2,445 franchised and 277 corporate-owned locations[23]. - PF Black Card membership penetration increased from 61% as of December 31, 2020, to 64% as of December 31, 2024, with average monthly dues per member rising from $17.01 to $19.01[1]. - Monthly membership dues start at $15 for the standard Classic Card and $24.99 for the PF Black Card, with current standard annual fees at $49[24]. - As of December 31, 2024, the company had 96 franchisee groups operating 2,445 clubs, indicating a substantial franchise network[115]. Marketing and Brand Strategy - Planet Fitness spent $88.6 million in 2024 on national marketing campaigns and local advertising, with franchisees required to contribute 2% of their gross monthly membership dues to the National Advertising Fund[1]. - The company plans to enhance its free fitness training program and provide over 500 workouts via its mobile application to attract new members[1]. - Planet Fitness aims to increase brand investment to drive awareness and growth, leveraging significant marketing expenditures from both franchisees and corporate[1]. - Franchisees in the U.S. and Canada are required to spend 7% of their monthly dues on local marketing to support branding efforts[47]. - The company has aligned with high-profile media partners, reaching over one billion TV viewers annually through sponsorships[48]. Financial Performance and Royalties - The average royalty rate for Planet Fitness was 6.6% in 2024, up from 6.3% in 2020, with only 57% of clubs paying royalties at the current franchise agreement rate[1]. - The company's financial results are heavily reliant on royalties from franchisees, which are based on a percentage of gross monthly membership dues and annual fees[115]. - Economic conditions such as recession, inflation, and decreased consumer confidence could materially harm franchisees' financial conditions, adversely affecting the company's revenues[115]. Challenges and Risks - The health club industry is highly competitive, with various fitness and non-fitness alternatives vying for consumer discretionary spending[51]. - The company and its franchisees face challenges in attracting and retaining members, which could adversely impact business operations and financial condition[91]. - The company is exposed to risks related to cybersecurity, which could disrupt operations and damage reputation if data integrity is compromised[15]. - The company must effectively respond to changing consumer preferences in health and fitness to avoid adverse impacts on business[89]. - The company faces increased risks of cybersecurity incidents due to geopolitical events, which could disrupt operations and affect member services[97]. Debt and Financial Obligations - As of December 31, 2024, the Master Issuer had approximately $2.2 billion of outstanding debt[173]. - The Master Issuer issued $575 million in Series 2018-1 Fixed Rate Senior Secured Notes and $625 million in Series 2018-1 Fixed Rate Senior Secured Notes on August 1, 2018[165]. - The company expects substantial payments under tax receivable agreements, which may affect future cash flow and operational decisions[180]. - The financial covenants may limit the ability to incur additional indebtedness in the future, intensifying existing risks[177]. - The company has significant outstanding debt, which could affect financial condition and operational results[84]. Employee and Operational Management - The company employed 3,806 employees at corporate-owned clubs and 367 employees across Corporate Support Centers as of December 31, 2024[55]. - The company emphasizes a competitive pay and benefits structure to support team members' financial, physical, and mental well-being[62]. - Competition for qualified employees is intense, and the inability to attract and retain key personnel could hinder the company's strategic objectives[112]. - The company must effectively manage growth to avoid strains on management, employees, and internal controls, which could adversely impact business operations[110]. Regulatory and Compliance Issues - Compliance with numerous laws and regulations is required, and failure to do so may result in fines, damages, and reduced royalty revenue[136]. - The company is subject to extensive regulations regarding indoor tanning services, which could harm reputation and profitability due to negative public perception[143]. - Changes in data privacy laws could impose additional costs and operational constraints, adversely affecting business models and revenue[141]. - The handling of personally identifiable information is regulated at multiple levels, and noncompliance could lead to material adverse effects on business and financial condition[103]. Strategic Growth and Expansion - The company is expanding internationally, which presents risks including inadequate brand infrastructure and political instability in foreign markets[113]. - The growth strategy is dependent on franchisees' ability to access funds for new club development, which could be adversely affected if financing is not available[107]. - The company must effectively market and promote its brand in new markets to ensure the success of new clubs, or growth may be significantly delayed[108]. - Failure to open new clubs as anticipated could hinder revenue growth and adversely affect operating income[109]. Technology and Innovation - The company utilizes a computerized club management system to track and analyze sales, membership statistics, and demographic profiles[66]. - Since 2019, the company has developed a new customized mobile application and rolled out a new in-club media solution to enhance digital experiences[96]. - The adoption of artificial intelligence technologies may require substantial resources and could impact financial performance if not managed properly[163]. Financial Volatility and Market Risks - The stock price of Class A common stock has fluctuated between $13.23 and $102.01 since the IPO, indicating potential volatility[205]. - The company’s financial forecasting may differ materially from actual results, potentially causing a decline in stock price[212]. - The company faces potential litigation costs and management distraction due to securities class action litigation following stock price volatility[209]. - Inflationary conditions may lead to increased shipping, labor, and equipment costs, impacting profitability, particularly due to minimum wage increases affecting labor costs[337].

Core Insights - Planet Fitness shares declined due to 2025 projections overshadowing a strong fourth quarter performance [1][4] - The company reported an adjusted earnings per share (EPS) of $0.70 for Q4 2024, with revenue of $340.45 million, both showing year-over-year growth and exceeding analyst expectations [1][4] Financial Performance - For Q4 2024, Planet Fitness achieved a same club sales growth of 5.5%, surpassing the anticipated 4.84% [1] - The company forecasts approximately 10% revenue growth for 2025, projecting revenue to reach about $1.3 billion, slightly above analyst consensus [2] - Adjusted EPS is expected to grow by 11% to 12%, while same club sales are projected to increase by 5% to 6% in 2025, both slightly below current analyst projections [2] Market Reaction - Following the unexpected departure of its CEO in September 2023, Planet Fitness shares have rebounded, hitting a record high in late January 2024 [3] - Despite the recent decline of over 8% in share price, it remains more than 40% higher than a year ago [3]

Planet Fitness Inc. (NYSE:PLNT) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Colleen Keating - Chief Executive Officer Jay Stasz - Chief Financial Officer Stacey Caravella - Vice President, Investor Relations Conference Call Participants Simeon Siegel - BMO Capital Markets Randal Konik - Jefferies Sharon Zackfia - William Blair Joe Altobello - Raymond James Rahul Krotthapalli - JP Morgan John Heinbockel - Guggenheim Partners Max Rakhlenko - TD Cowen Jonathan Komp - Bair ...

Core Insights - Planet Fitness reported revenue of $340.45 million for the quarter ended December 2024, marking a year-over-year increase of 19.4% and exceeding the Zacks Consensus Estimate by 4.24% [1] - The earnings per share (EPS) for the same period was $0.70, up from $0.60 a year ago, representing a surprise of 12.90% over the consensus estimate of $0.62 [1] Financial Performance Metrics - Total stores at the end of the period reached 2,722, slightly above the average estimate of 2,720 [4] - Same-store sales increased by 5.5%, surpassing the estimated 4.8% [4] - Corporate-owned same-store sales were reported at 4.4%, below the estimated 4.8% [4] - New stores opened totaled 86, exceeding the estimate of 81 [4] - Franchisee-owned same-store sales grew by 5.7%, above the average estimate of 4.7% [4] Revenue Breakdown - Revenue from the national advertising fund was $19.49 million, slightly below the estimate of $19.58 million, but reflecting a year-over-year increase of 10.5% [4] - Franchise revenue was reported at $89.54 million, below the estimate of $90.60 million, with an 11.1% year-over-year increase [4] - Equipment segment revenue reached $105.12 million, significantly above the average estimate of $86.99 million, representing a 49.2% year-over-year increase [4] - Corporate-owned stores segment revenue was $126.31 million, below the estimate of $130.83 million, with an 8.5% year-over-year increase [4] - Franchise segment revenue was $109.02 million, slightly below the estimate of $109.70 million, with an 11% year-over-year increase [4] Stock Performance - Planet Fitness shares have returned -4.1% over the past month, compared to the Zacks S&P 500 composite's -1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Planet Fitness reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of 12.90% [1] - The company generated revenues of $340.45 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.24% and up from $285.09 million year-over-year [2] - Planet Fitness has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $288.35 million, while for the current fiscal year, the estimate is $2.94 on revenues of $1.29 billion [7] - The estimate revisions trend for Planet Fitness is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Planet Fitness belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]