Shares of Planet Fitness Inc.
PLNT,
fell 1.3% toward a three-month low in premarket trading Thursday, after the fitness center operator beat fourth-quarter earnings expectations but provided a downbeat growth outlook for this year. Net income increased to $35.3 million, or 41 cents a share, from $33.7 million, or 40 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 60 cents topped the FactSet consensus of 58 cents. Total revenue grew 1.4% to $285.1 million, above the FactSet consensus of $282.7 million, as franchise revenue rose 13.9% to $98.2 million and corporate-owned revenue was up 15.9% to $116.4 million, while equipment revenue dropped 25.5% to $70.4 million. For 2024, the company expects adjusted EPS to increase in the 10% to 11% range and revenue to be up 6% to 7%, while the FactSet consensus for EPS of $2.51 implies 12.1% growth and for revenue of $1.155 billion implies 7.8% growth. The company said given its new growth model, which focuses on reducing the capital requirements for opening and maintaining a franchise location, Chief Executive Craig Benson said he believes 2024 will be a “transition year” for franchisees. The stock has lost 9.8% year to date through Wednesday while the S&P 500
SPX,
has gained 4.4%.
