Active Wall St. announces its post-earnings coverage on Planet Fitness, Inc. (NYSE: PLNT). The company reported results on August 11, 2016. One of the largest fitness chains of budget-priced gyms in America posted another period of stellar financial results and also updated its guidance. Register with us now for your free membership at: http://www.activewallst.com/register/.
Today, AWS is promoting its earnings coverage on PLNT. Get our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=PLNT.
For the second quarter ended on June 30, 2016, Planet Fitness reported net income of $18.1 million, or $0.11 per share, compared to $11.6 million in the year ago quarter. On an adjusted basis, the company’s earnings were $16.8 million, or $0.17per share, up 28% from $13.2 million in the year earlier quarter. The company’s revenue rose 15.9% to $91.5 million. Analysts had projected adjusted earnings of $0.15 per share on $85 million in revenue. The company has topped Wall Street’s forecast by a double-digit percentage margin in every quarter since it made its debut on the stock exchange in August 2015.
The Newington, New Hampshire, headquartered Planet Fitness reported another period of double-digit growth, driven by a 7.6% hike in same-store sales (above the 5.9% predicted by analysts), and franchisees opening 36 stores during Q2 FY16, to hit 1,206 total locations with nearly 8.6 million members.
During Q2 FY16, revenue from Planet Fitness Franchise’s segment, which includes commission income, and accounts for nearly a third of the company’s revenue, increased $7.6 million, or 34.7%, to $29.5 million from $21.9 million in Q2 FY15. The 58, corporate-owned gyms reported revenue growth of $1.4 million or 5.6% to $26.4 million from $25.0 million in the year earlier quarter. The Equipment segment’s revenue increased $3.5 million or 10.9% to $35.6 million from $32.1 million. The company attributed the increase in replacement equipment sales to existing franchisee-owned stores.
At the end of the reported quarter, the company had $55.6 million in cash compared to $31.43 million it had at the end of December 31, 2016. Planet fitness liabilities have also increased due to a secondary public offering in June 2016. The company completed a secondary offering of 11.5 million shares of its Class a common stock at a price of $16.50 per share. All of the proceeds went to its existing stake holders and the company did not receive any proceeds from the sale.
For the year ending on December 31, 2016, the fitness chain is expecting franchisees to open between 210 and 220 new stores. Planet Fitness expects annual revenue in the range of $366 million to $372 million, up from its previous outlook of $360 million to $370 million. The company is projecting revenue in the range of $366 million to $372 million for the year, while it also raised its forecast for adjusted net income of $62 million to $65 million with adjusted earnings of $0.62 per share to $0.65 per share. Additionally, Planet Fitness now sees same-store sales rising by a percentage in the high-single digits for the year, better than the previous prediction for growth in the mid-single digits. Analysts project earnings of $0.65 per share on $366 million in revenue.
The company’s shares closed the session at $21.67, down 2.03% on total volume of 557,742. The stock has advanced 5.86% in the last one month and 30.23% in the last three months. Moreover, since the beginning of the year, Planet Fitness’ shares have gained 38.64%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email firstname.lastname@example.org. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.