Planet Fitness Inc.’s stock
PLNT,
fell 3.9% premarket Thursday, after the gym operator topped second-quarter earnings estimates but lowered its full-year guidance amid higher costs. The company had net income of $41.1 million, or 48 cents a share, for the quarter, up from $22.3 million, or 26 cents a share, in the year-earlier period. Adjusted per-share earnings came to 65 cents, ahead of the 55 cent FactSet consensus. Revenue rose 27.6% to $286.5 million, also ahead of the $252 million FactSet consensus. “More of our members are working out more frequently, previous members are rejoining at a faster rate than they did pre-pandemic, and they’re staying longer as Q2 was our eighth straight quarter with lower year-over-year cancellation rates, ” said CEO Chris Rondeau in a statement. However, because of new store construction costs and higher interest rates, the company is lowering its full -year guidance for placements of equipment in new franchisee stores to approximately 140, down from 160 previously. It expects revenue to rise about 12%, compared with prior guidance of 13% to 14%. Adjusted EPS is now expected to rise about 34%, compared with prior guidance of 33% to 36%. The stock has fallen 16% in the year to date, while the S&P 500
SPX,
has gained 18%.
