Yahoo Finance Planet Fitness (PLNT) Q1 Earnings & Revenues Miss, Stock Down
Planet Fitness, Inc. PLNT reported first-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the metrics increased on a year-over-year basis. Following the announcement, shares of PLNT declined 16.3% during trading hours on May 4.
Earnings & Revenue Discussion
During the first quarter, Planet Fitness reported adjusted earnings per share (EPS) of 41 cents, missing the Zacks Consensus Estimate of 46 cents. In the prior-year quarter, the company reported an adjusted EPS of 32 cents.
Quarterly revenues of $222.2 million lagged the consensus mark of $242 million. However, the top line improved 19% from the year-ago quarter’s levels, driven by solid performances in the Franchise and Corporate-owned Stores. During the quarter under review, system-wide same-store sales increased 9.9% year over year compared with 9% reported in the previous quarter.
Total adjusted EBITDA was $90.2 million compared with $76.7 million reported in the year-ago quarter.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. Quote
Segmental Performance
During first-quarter 2023, Franchise revenues were $92.7 million, up 15.7% year over year. The upside was driven by rises of $8.0 million, $2.8 million and $2.6 million in franchise royalty revenues, National Advertising Fund revenues, and franchise and other fees, respectively. However, the uptick was partially negated by a $0.7 million reduction in equipment placement revenues.
EBITDA in the Franchise segment was $64.7 million compared with $60.1 million reported in the prior-year quarter.
Revenues from Corporate-owned Stores amounted to $105.9 million compared with $76.2 million in the year-ago quarter. The increase can primarily be attributed to a rise in same-store sales and new store openings. The acquisition of 114 stores through the Sunshine Fitness buyout contributed $23.5 million to the segment’s revenues. EBITDA totaled $33.5 million compared with $23.3 million reported in the prior-year quarter.
In the Equipment segment, revenues totaled $23.7 million, down 22.6% year over year. EBITDA was $5.6 million compared with $2.5 million reported in the year-ago quarter.
Other Financial Details
As of Mar 31, cash and cash equivalents totaled $460.4 million compared with $409.8 million as of Dec 31, 2022. Long-term debt (net of current maturities) amounted to $1,974.3 million compared with $1,978.1 million as of Dec 31, 2022.
2023 Outlook
Planet Fitness reiterated 2023 view. Management continues to expect revenues to increase in the 13-14% band. Adjusted EBITDA is estimated to increase in the 17-18% range, while adjusted net income is anticipated to be between 30% and 33%. Adjusted EPS is projected to increase in the 33-36% band.
PLNT anticipates adjusted shares outstanding to be approximately 89.5 million (inclusive of 1 million shares repurchase over the course of the year).
The metrics are based on the assumption of no significant worsening of the COVID-19 pandemic and supply-chain disruptions.
Zacks Rank & Stocks to Consider
Planet Fitness currently carries a Zacks Rank #3 (Hold).
Here we present some better-ranked stocks from the Zacks Consumer Discretionary sector.
Boyd Gaming Corporation BYD currently sports a Zacks Rank #1 (Strong Buy). BYD has a trailing four-quarter earnings surprise of 13.7%, on average. The stock has increased 30.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BYD’s 2023 sales and EPS indicates rises of 1.4% and 2.8%, respectively, from the year-ago period’s levels.
Crocs, Inc. CROX carries a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 19.6%, on average. The stock has surged 71.8% in the past six months.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS implies improvements of 13.1% and 2.8%, respectively, from the year-ago period’s levels.
PlayAGS, Inc. AGS carries a Zacks Rank #2. AGS has a trailing four-quarter earnings surprise of 133.3%, on average. The stock has declined 24.7% in the past six months.
The Zacks Consensus Estimate for AGS’ 2024 sales and EPS suggests increases of 3% and 1,873.3%, respectively, from the year-ago period’s levels.
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