Planet Fitness Shares Slide On Q2 Revenue Miss

Planet Fitness Shares Slide On Q2 Revenue Miss
  • Planet Fitness Inc PLNT reported second-quarter FY22 sales growth of 63.5% year-on-year to $224.4 million, missing the consensus of $230.14 million. System-wide same-store sales increased by 13.6%.
  • Revenue from the Franchise segment rose 13.3% Y/Y to $82.5 million, the Corporate-owned stores climbed 150% to $101.5 million, and Equipment gained 69.8% Y/Y to $40.4 million.
  • Total operating costs and expenses rose 74.6% Y/Y to $169.4 million. The operating margin was 24.5%, and operating income for the quarter rose 36.9% to $55.1 million.
  • Adjusted EBITDA increased 61.8% Y/Y to $89.9 million. Adjusted EPS of $0.38 beat the consensus of $0.37.
  • The company held $446.3 million in cash and equivalents as of June 30, 2022.
  • Outlook: Planet Fitness sees FY22 sales growth in the mid-50% range. The company expects FY22 adjusted EBITDA to up in high-50% and adjusted EPS to increase in the mid-80% range.
  • Price Action: PLNT shares are trading lower by 6.15% at $76.10 on the last check Tuesday.

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