Planet Fitness(US:PLNT) ZACKS·2025-02-26 15:25Core Viewpoint - Planet Fitness, Inc. reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding expectations, but faced negative investor sentiment due to a cautious 2025 outlook [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were 70 cents, surpassing the Zacks Consensus Estimate of 62 cents by 12.9%, and up from 60 cents in the prior-year quarter [3]. - Quarterly revenues reached $340.5 million, exceeding the consensus mark of $327 million by 4.2%, and improved 19.4% year over year, driven by a 5.5% increase in same-club sales [3]. - Adjusted EBITDA for the quarter was $130.8 million, an increase from $114.3 million reported in the year-ago quarter [4]. Segment Performance - Franchise segment revenues rose 11% year over year to $109 million, driven by increased royalty revenues and new club openings [5]. - Corporate-owned clubs generated revenues of $126.3 million, up 8.5% year over year, attributed to new clubs opened and acquired [6]. - Equipment segment revenues totaled $105.1 million, a significant increase of 49.2% year over year, due to higher sales to franchisee-owned clubs [7]. 2024 Highlights - Total revenues for 2024 were $1.18 billion, compared to $1.07 billion in 2023 [10]. - Adjusted EBITDA for 2024 was $487.7 million, up from $435.4 million in 2023 [10]. - Adjusted net income per share (diluted) for 2024 was $2.59, compared to $2.24 in the previous year [10]. 2025 Outlook - For 2025, the company expects revenue growth of approximately 10% over 2024 levels, with same-club sales growth projected in the 5-6% range [11]. - Adjusted EBITDA for 2025 is estimated to grow by approximately 10%, while adjusted net income is expected to increase in the 8-9% range [12]. - Capital expenditures are projected to rise by 25% in 2025, driven by investments in new corporate-owned clubs [13].