Inclusive gym franchise company (NYSE:PLNT) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
Planet Fitness beat analysts’ revenue expectations last quarter, reporting revenues of $330.3 million, up 13% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
Is Planet Fitness a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Planet Fitness’s revenue to grow 7.9% year on year, slowing from the 19.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Planet Fitness has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Planet Fitness’s peers in the consumer discretionary – leisure facilities segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Sphere Entertainment delivered year-on-year revenue growth of 27.9%, beating analysts’ expectations by 4.4%, and Live Nation reported revenues up 11.1%, topping estimates by 3.5%. Sphere Entertainment traded up 22% following the results while Live Nation was also up 3.3%.
Read our full analysis of Sphere Entertainment’s results here and Live Nation’s results here.
Investors in the consumer discretionary – leisure facilities segment have had steady hands going into earnings, with share prices flat over the last month. Planet Fitness is down 1.7% during the same time and is heading into earnings with an average analyst price target of $130 (compared to the current share price of $91.76).
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