Inclusive gym franchise company (NYSE:PLNT) will be reporting earnings tomorrow morning. Here’s what to expect.
Planet Fitness beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $292.2 million, up 5.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS 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 13.8% year on year to $324.4 million, improving from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Planet Fitness’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Live Nation’s revenues decreased 2.7% year on year, beating analysts’ expectations by 1.4%, and Marcus & Millichap reported revenues up 44.4%, topping estimates by 20.2%. Live Nation traded down 1.9% following the results while Marcus & Millichap was up 5.4%.
Read our full analysis of Live Nation’s results here and Marcus & Millichap’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underperformed, with share prices down 2.4% on average over the last month. Planet Fitness is down 3.4% during the same time and is heading into earnings with an average analyst price target of $111.72 (compared to the current share price of $97.50).
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