Inclusive gym franchise company (NYSE:PLNT) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Planet Fitness beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $300.9 million, up 5.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a narrow beat of analysts’ earnings estimates.
Is Planet Fitness a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Planet Fitness’s revenue to grow 2.8% year on year to $285.3 million, slowing from the 13.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Planet Fitness has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Planet Fitness’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bowlero delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 4.3%, and Life Time reported revenues up 18.5%, in line with consensus estimates. Bowlero traded up 11.9% following the results while Life Time was down 7.1%.
Read our full analysis of Bowlero’s results here and Life Time’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.3% on average over the last month. Planet Fitness is down 2.5% during the same time and is heading into earnings with an average analyst price target of $87.76 (compared to the current share price of $78.54).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
