Planet Fitness profit beats estimates as revenue falls short

Planet Fitness Inc. PLNT,
posted better-than-expected profit for the first quarter, while revenue fell slightly short as the franchisor and operator of fitness centers announced plans to expand to New Zealand and open its first centers in Mexico. The company posted net income of $ 16.5 million, or 19 cents a share, for the quarter, up from $ 5.6 million, or 7 cents a share, in the year-earlier period. Adjusted per-share earnings came to 32 cents, ahead of the 27 cent FactSet consensus. Revenue rose to $ 186.7 million from $ 111.9 million a year ago, just below the $ 190.0 million FactSet consensus. The company said it completed the acquisition of Sunshine Fitness, one of its franchisees, and refinanced a portion of its debt during the quarter. “We are looking forward to the upcoming launch of the High School Summer Pass that offers teens a chance to workout for free at our gyms over the summer – an extremely important initiative given the alarming teen mental health crisis in the US,” CEO Chris Rondeau said in a statement. The company is now expecting full-year revenue growth in the mid-50% range, and for adjusted EPS in the mid-80% range. The FactSet consensus implies revenue growth of 56% to $ 914 million and EPS growth of 86% to $ 1.53. Shares were not yet active premarket, but have fallen 24% in the year to date, while the S&P 500 SPX,
has fallen 16%.

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