Planet Fitness misses profit and revenue expectations, but provides in-line full-year outlook

Planet Fitness Inc. (PLNT) reported Thursday first-quarter profit and revenue that rose less than expected, but provided an in-line full-year growth outlook, with "all generational groups back to pre-pandemic population penetration levels." The fitness center operator's stock was still inactive in premarket trading. Net income increased to $22.7 million, or 27 cents a share, from $16.5 million, or 19 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 41 cents missed the FactSet consensus of 46 cents. Revenue grew 19.0% to $222.23 million, but was below the FactSet consensus of $238.3 million. "Our business continues to rebound from the impact of COVID-19 shutdowns with more than 50 percent of our U.S. stores opened prior to 2019 back to or above pre-pandemic membership levels, with member growth driving our 9.9 percent increase in system-wide same stores sales," said Chief Executive Officer Chris Rondeau. Same-store sales beat expectations of a 9.5% rise. For 2023, the company expects adjusted EPS growth of 33% to 36%, while the FactSet EPS consensus of $2.21 implies 34.8% growth. The company also expects 2023 revenue to rise 13% to 14%, while the FactSet revenue consensus of $1.07 billion implies 13.8% growth. The stock has gained 3.5% year to date, while the S&P 500 has tacked on 6.5%.

-Tomi Kilgore

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05-04-23 0649ET

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