Planet Fitness, Inc. PLNT shares are trading higher after the company reported second-quarter results.
The company reported adjusted earnings per share of 71 cents, beating the street view of 66 cents.
Quarterly sales of $300.94 million (+5.1%) beat the analyst consensus of $288.225 million.
System-wide same-store sales increased 4.2%, while system-wide sales increased to $1.2 billion from $1.1 billion in the prior year period.
Franchise segment revenue rose 9.1% to $107.8 million, corporate-owned stores revenue increased 10.3% to $125.5 million, while equipment segment revenue fell 8.4% to $67.7 million from the prior year period.
Adjusted EBITDA increased 7.2% to $127.5 million from $118.9 million in the prior year period.
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During the period, Planet Fitness opened 18 new stores—17 franchisee-owned and 1 corporate-owned—bringing the total number of system-wide locations to 2,617 as of June-end.
As of quarter-end, the company held $447.7 million in cash and marketable securities, including $247.0 million in cash and cash equivalents, $47.8 million in restricted cash, and $152.9 million in marketable securities.
Outlook, reiterated: For the year ending December 31, 2024, the company is maintaining its expectations for 120 to 130 new equipment placements in franchisee-owned locations and 140 to 150 new store openings.
Growth projections include a 3% to 5% increase in system-wide same-store sales and a 4% to 6% rise in revenue over 2023 results, representing $1.11 billion – $1.14 billion against the estimate of $1.132 billion.
Adjusted EPS is expected to increase by 7% to 9%, representing $2.40 – $2.44 against the consensus of $2.43.
Price Action: PLNT shares are trading higher by 11.1% to $80.00 premarket at last check Tuesday.
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