Are People Going Back To The Gym? This Company's Q3 Report Gives The Answer

A leading fitness center operator reported third-quarter financial results before the market opened Thursday. The results could highlight the reopening trade being in play for gym operators.

What Happened: Planet Fitness Inc PLNT reported third-quarter revenue of $154.3 million, up 46% year-over-year. The revenue total came in ahead of a street consensus of $135.2 million.

The company reported earnings per share of 25 cents in the third quarter beating a street estimate of 18 cents per share.

“We are emerging from the COVID-19 pandemic stronger than ever,” Planet Fitness CEO Chris Rondeau said.

Planet Fitness reported same-store sales of +7.2% and a total of more than 15 million members.

“We returned to positive system-wide same-store sales growth and achieved the highest sequential net member growth of any third quarter in company history as well as our highest franchise segment revenue on record.”

The company opened 24 new locations in the third quarter, ending the quarter with 2,193 locations. The company plans to open a total of 110 to 120 locations in the full fiscal year.

Related Link: Why Morgan Stanley Likes Planet Fitness As Reopening Play 

What’s Next: After the strong third quarter, the company is raising full-year revenue guidance.

Planet Fitness sees full-year revenue hitting a range of $570 million to $580 million, up from its prior range of $530 million to $540 million. The street estimate is currently $538.1 million for the full fiscal year.

The fourth quarter is usually the company’s highest in terms of revenue. Fourth-quarter revenue was $191.5 million last year compared to $166.8 million in the third quarter.

“I am more enthusiastic than ever with several factors driving both near and long-term growth opportunities,” Rondeau said.

The CEO highlighted the company’s 30th anniversary being celebrated next year and a transition to just one agency for both local and national advertising.

PLNT Price Acton: Planet Fitness shares are up 9.66% to $90.70 on Thursday at publication. Shares have traded between $62.32 and $92.17 over the last 52 weeks.

Photo by Victor Freitas on Unsplash