Planet Fitness, Inc. PLNT is scheduled to report fourth-quarter 2025 results on Feb. 24, before the opening bell.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 11.1% and 1.7%, respectively. Also, both metrics increased on a year-over-year basis.
It posted better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with an average surprise of 7%.
PLNT’s Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has increased to 78 cents from 77 cents in the past 60 days. The estimated earnings figure indicates growth of 11.4% from the 70 cents per share reported in the year-ago quarter.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. Quote
The consensus mark for revenues stands at $365.1 million, implying growth of 7.2% from the year-ago reported figure of $340.5 million.
Factors to Note for Planet Fitness’ Q4 Results
Planet Fitness is likely to deliver year-over-year revenue growth in the fourth quarter, supported by sustained momentum in its equipment segment, fueled by new club openings, re-equipment activity and continued format optimization initiatives — all of which provide incremental revenue contribution. Pricing actions flowing through the system, a favorable mix shift toward higher-tier Black Card memberships and steady join trends are expected to remain the primary growth catalysts, collectively underpinning solid quarterly performance.
On the headwind side, elevated attrition following the rollout of click-to-cancel functionality pressured net membership growth and partially offset strong gross joins. While these attrition rates began to moderate late in the third quarter, management has modeled continued year-over-year elevation into the fourth-quarter outlook. The benefit from prior pricing actions is beginning to normalize, which reduces the incremental rate-driven comp tailwind into the fourth quarter.
Per our model, fourth-quarter total Franchise and Corporate-Owned clubs revenues are expected to increase year over year by 8.8% and 8.6% to $97.4 million and $137.2 million, respectively. And our model predicts total Equipment revenues to increase 5.3% year over year to $110.7 million.
The company’s bottom line is expected to increase year over year, supported by SG&A leverage, disciplined cost management and improved marketing efficiency following the optimization of the national advertising fund. The inherently high-margin, royalty-driven franchise model continues to underpin profitability, while a more favorable real estate environment enhances long-term unit economics and margin sustainability.
However, corporate operating expenses are likely to rise due to new club openings and international expansion, resulting in near-term margin pressure from unit ramp-up costs.
What the Zacks Model Unveils for PLNT
Our proven model does conclusively predict an earnings beat for Planet Fitness this time around. The company does have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.
PLNT’s Earnings ESP: PLNT has an Earnings ESP of +1.71% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
PLNT’s Zacks Rank: The company currently carries a Zacks Rank of 3.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model indicates they also have the right combination of elements to post an earnings beat.
Norwegian Cruise Line Holding Ltd. NCLH currently has an Earnings ESP of +0.76% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, NCLH’s earnings are expected to increase 7.7%. Norwegian Cruise Line’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 28.9%.
Civeo Corporation CVEO has an Earnings ESP of +70.97% and a Zacks Rank #3 at present.
CVEO’s earnings for the to-be-reported quarter are expected to increase 53.4%. Civeo reported better-than-expected earnings in one of the trailing four quarters and missed thrice, the average surprise being negative 251.1%.
PENN Entertainment, Inc. PENN currently has an Earnings ESP of +7.03% and a Zacks Rank of 3.
PENN’s earnings for the to-be-reported quarter are expected to increase 54.6%. PENN reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 59.1%.
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PENN Entertainment, Inc. (PENN): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
Civeo Corporation (CVEO): Free Stock Analysis Report
Planet Fitness, Inc. (PLNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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