Planet Fitness, Inc. PLNT shares are trading higher on Thursday after reporting first-quarter results.
The company reported adjusted earnings per share of 41 cents, missing the street view of 50 cents.
Quarterly revenues of $248 million missed the analyst consensus of $249.48 million. Total revenue increased from the prior year period by 11.6%, while system-wide same-store sales increased by 6.2%.
Franchise segment revenue increased 12.2% to $104.0 million, Corporate-owned stores segment revenue increased 15.6% to $122.4 million, and Equipment segment revenue decreased 8.6% to $21.6 million.
Adjusted EBITDA increased $16.1 million to $106.3 million from $90.2 million in the prior year period.
Planet Fitness said 25 new stores were opened system-wide during the period, which included 23 franchisee-owned and 2 corporate-owned stores, bringing system-wide total stores to 2,599 as of March-end.
The company exited the quarter with cash and equivalents worth $486.4 million. Total inventories at quarter end totaled $4.959 million.
“During the quarter, we faced several headwinds which impacted our results including a shift in consumer focus in the New Year to savings and concern over the increase in COVID infections and other illnesses, as well as a national advertising campaign that we believe may not have resonated as broadly as we had anticipated. As a result of these and other factors, we are lowering our outlook for the full year,” said Craig Benson, Interim Chief Executive Officer.
Dull Outlook: The company now expects FY24 revenue to increase in the 4% to 6% range (prior view: 6% to 7%).
It now expects adjusted EBITDA to increase in the 7% to 9% range (prior view: 10% to 11%). It now expects adjusted net income per share to increase in the 7% to 9% range (prior view: 10% to 11%).
The company said it continues to expect system-wide new store openings of approximately 140 to 150 locations. It now expects system-wide same-store sales in the 3% to 5% percentage range (prior view: 5% to 6%).
Price Action: PLNT shares are trading higher by 5.58% to $65.30 at last check Thursday.
Photo via Wikimedia Commons
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