For the quarter ended June 2024, Planet Fitness (PLNT) reported revenue of $300.94 million, up 5.1% over the same period last year. EPS came in at $0.71, compared to $0.65 in the year-ago quarter. The reported revenue represents a surprise of +2.93% over the Zacks Consensus Estimate of $292.39 million. With the consensus EPS estimate being $0.65, the EPS surprise was +9.23%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Financial Performance - Total revenue for Q2 2024 reached $300,941, an increase of 5.2% compared to $286,463 in Q2 2023[11]. - Net income attributable to Planet Fitness, Inc. for Q2 2024 was $48,640, up 18.3% from $41,135 in Q2 2023[11]. - Basic net income per share for Q2 2024 was $0.56, compared to $0.49 in Q2 2023, reflecting an increase of 14.3%[11]. - Total operating costs and expenses for Q2 2024 were $213,562, a slight increase from $209,461 in Q2 2023[11]. - The company reported a total comprehensive income of $48,651 for Q2 2024, compared to $44,214 in Q2 2023, representing an increase of 10.5%[13]. - Net income for the period ending June 30, 2024, is reported at $49,312,000, reflecting a significant increase compared to previous periods[23]. - Net income for the six months ended June 30, 2024, was $84,285,000, an increase from $68,948,000 in the same period of 2023, representing a growth of approximately 22.1%[17]. - Adjusted net income for Q2 2024 reached $62,167 thousand, up 7.2% from $57,665 thousand in Q2 2023[112]. - Adjusted net income for the first half of 2024 was $109,427 thousand, a 16.3% rise from $94,056 thousand in the first half of 2023[115]. Assets and Liabilities - As of June 30, 2024, total assets increased to $2,974,040 thousand from $2,969,693 thousand as of December 31, 2023, reflecting a growth of approximately 0.15%[9]. - Cash and cash equivalents decreased to $246,961 thousand from $275,842 thousand, a decline of about 10.5%[9]. - Total current liabilities rose to $272,126 thousand compared to $251,329 thousand, marking an increase of approximately 8.3%[9]. - Long-term debt increased significantly to $2,156,551 thousand from $1,962,874 thousand, representing a rise of about 9.8%[9]. - The accumulated deficit grew to $(910,626) thousand from $(691,461) thousand, indicating an increase of approximately 31.7%[9]. - Total stockholders' deficit attributable to Planet Fitness, Inc. increased to $(317,664) thousand from $(115,649) thousand, a rise of approximately 174.5%[9]. - As of June 30, 2024, the total equity deficit stands at $319,830,000, with an accumulated deficit of $910,626,000[19]. - The total debt, net of deferred financing costs, was $2,177,051 as of June 30, 2024, compared to $1,983,624 as of December 31, 2023[53]. Revenue Segments - Total revenue from corporate-owned stores for Q2 2024 was $125,466, up 10.3% from $113,759 in Q2 2023[11]. - Franchise segment revenue in the U.S. for Q2 2024 was $104,541, up 8.8% from $96,337 in Q2 2023[85]. - Corporate-owned stores segment revenue in the U.S. for Q2 2024 was $124,187, an increase of 10.4% from $112,618 in Q2 2023[85]. - Franchise segment revenue increased to $107,790,000 for the three months ended June 30, 2024, up 9.9% from $98,842,000 in the prior year[97]. - Corporate-owned stores segment revenue increased to $125,466,000 for the three months ended June 30, 2024, compared to $113,759,000 in the same period of 2023, reflecting a growth of 10.5%[97]. Membership and Store Growth - As of June 30, 2024, Planet Fitness has approximately 19.7 million members and operates 2,617 locations across various regions[26]. - The number of franchisee-owned stores increased to 2,358 as of June 30, 2024, from 2,230 a year earlier, marking a growth of 5.7%[95]. - Corporate-owned stores increased to 259 as of June 30, 2024, from 242 a year earlier, representing a growth of 7.0%[95]. - Planet Fitness opened 18 new stores in the three months ended June 30, 2024, compared to 26 new stores in the same period of 2023[100]. - The company had contractual commitments to open approximately 1,000 new stores as of June 30, 2024[95]. Cash Flow and Investments - Cash flows from operating activities for the first six months of 2024 were $167,948, compared to $157,330 in the same period of 2023, indicating a growth of 6.5%[17]. - The company reported a net cash used in investing activities of $90,436,000 for the six months ended June 30, 2024, a significant decrease from $201,021,000 in the prior year, indicating improved cash management[17]. - The company issued $800,000,000 in long-term debt during the six months ended June 30, 2024, to support its financing activities[17]. - Net cash provided by operating activities increased to $167,948,000 for the six months ended June 30, 2024, compared to $157,330,000 for the same period in 2023, reflecting a rise of about 6.5%[17]. Strategic Initiatives - The company is focused on expanding its franchise model, which is critical for revenue growth and operational profitability[5]. - Future growth strategies include new store development by existing and new franchisees, which is essential for increasing revenues and operating profits[5]. - The company anticipates continued growth through new store development and strategic partnerships, despite potential risks associated with competition and market conditions[4]. Accounting and Compliance - The company is evaluating the impact of new accounting standards effective after December 15, 2023, on its financial disclosures[34]. - The company was in compliance with its debt covenants as of June 30, 2024, with no material changes to debt obligations during the period[154].

Core Insights - Planet Fitness, Inc. reported strong second-quarter 2024 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][3] - The company's performance was bolstered by new store openings, increased royalty revenues, and an asset-light growth model, contributing to a rise in system-wide same-store sales [1][3] Earnings & Revenue Discussion - Adjusted earnings per share (EPS) reached 71 cents, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%, and increased from 65 cents in the prior-year quarter [3] - Quarterly revenues amounted to $300.9 million, exceeding the consensus mark of $292 million by 2.9%, and improved 5.1% year over year, driven by a 4.2% increase in system-wide same-store sales [3] - Adjusted EBITDA was reported at $127.5 million, up from $118.9 million in the same quarter last year [4] Segmental Performance - Franchise segment revenues increased by 9.1% year over year to $107.8 million, driven by a $6.3 million rise in royalty revenues and contributions from new stores [5] - Corporate-owned stores generated revenues of $125.5 million, a 10.3% increase from $113.8 million in the prior year, attributed to new store openings and acquisitions [6] - Equipment segment revenues totaled $67.7 million, down 8.4% year over year, primarily due to lower sales to both new and existing franchisee-owned stores [7] Other Financial Details - As of June 30, 2024, Planet Fitness had cash and cash equivalents of $247 million, down from $275.8 million at the end of 2023, while long-term debt increased to $2.16 billion from $1.96 billion [8] 2024 Outlook Updated - The company expects revenues to grow in the 4-6% range from 2023 levels, with system-wide same-store sales projected to increase by 3-5% [9] - Adjusted EBITDA is anticipated to rise by 7-9%, while adjusted net income is now expected to increase by 4-6%, down from a previous forecast of 6-8% [10]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Group 1: Earnings Performance - Planet Fitness reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and up from $0.65 per share a year ago, representing an earnings surprise of 9.23% [1] - The company posted revenues of $300.94 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.93%, compared to year-ago revenues of $286.46 million [2] Group 2: Market Performance - Planet Fitness shares have declined approximately 1.4% since the beginning of the year, while the S&P 500 has gained 8.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $288.23 million, and for the current fiscal year, it is $2.43 on revenues of $1.14 billion [7] Group 3: Industry Outlook - The Leisure and Recreation Services industry, to which Planet Fitness belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

1 IF D H HT T 100 - 100 1 i T 1 Pgiam/iStock via Getty Images Investment Thesis Planet Fitness (NYSE:PLNT) is a leading franchisor and operator of fitness centers that could benefit from the growing demand for affordable and accessible fitness solutions. PLNT has achieved significant growth in its membership base and store footprint over the years, given its slightly differentiated model that attracts a more unique gym 'customer'. The company operated -2,600 stores across at the end of Q. Its footprint is i ...

Core Viewpoint - The article emphasizes the importance of the VGM Score, which combines value, growth, and momentum styles to identify attractive investment opportunities, particularly in conjunction with the Zacks Rank [1][15]. Company Overview - Planet Fitness (PLNT) is a leading franchisor and operator of fitness centers in the United States, with approximately 19.6 million members and 2,599 stores across various regions, including the U.S., Canada, and Australia as of March 31, 2024 [8]. - As of December 31, 2023, about 90% of all franchise stores were owned and operated by franchisee groups [8]. Earnings Estimates - For fiscal 2024, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $2.43 per share [5]. Zacks Rank and Style Scores - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with a focus on stocks rated 1 (Strong Buy) or 2 (Buy) [6][7]. - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [7]. - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, where A indicates the best chance of outperforming the market [15][16]. Investment Recommendation - Planet Fitness is currently rated 3 (Hold) on the Zacks Rank but has a VGM Score of A, indicating strong potential for investors [19]. - The stock has a Momentum Style Score of A, with shares increasing by 1.9% over the past four weeks, making it a noteworthy option for momentum investors [21][22].

The shares of Planet Fitness Inc (NYSE:PLNT) are up 3.1% before the bell, after TD Cowen upgraded the recreation stock to "buy" from "hold" and raised its price target to $92 from $66. The analyst in coverage called PLNT a "top pick" and an "early turnaround play," saying its catalyst path is hard to ignore and pointed towards the upside to valuation. This bull note could cause a sentiment shift in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX ...

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Core Viewpoint - Planet Fitness has entered into a $280 million accelerated share repurchase agreement with Citibank as part of its $500 million share repurchase authorization, indicating a strong commitment to returning capital to shareholders [1][4]. Share Repurchase Program - The company will pay Citibank $280 million in cash and will initially receive approximately 3.1 million shares of its Class A common stock, representing about 80% of the expected repurchases under the agreement [4]. - A new share repurchase program of up to $500 million has been authorized, which will replace the existing 2022 program upon completion of the ASR Agreement [5]. Financial Outlook for 2024 - Adjusted net income is now expected to increase in the range of 4% to 6%, down from a previous expectation of 6% to 8% [7]. - Adjusted net income per share, diluted, is anticipated to rise by 7% to 9%, based on approximately 86.5 million diluted weighted-average shares outstanding [7]. - The company now expects net interest expense for 2024 to be around $75 million, an increase from the previous estimate of $70 million [8]. Company Overview - Planet Fitness, founded in 1992, is one of the largest and fastest-growing fitness center operators globally, with approximately 19.6 million members and 2,599 locations as of March 31, 2024 [9]. - The company's mission is to provide a high-quality fitness experience in a welcoming environment, known as the Judgement Free Zone [9].