Planet Fitness (PLNT) Exceeds Q3 Earnings and Revenue Estimates

Planet Fitness (PLNT) posted quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.59 per share last year. These figures are adjusted for infrequent items.

This quarterly report shows an impressive return of 10.34%. Last quarter, the fitness center operator was expected to post earnings of $0.65 per share when it actually posted earnings of $0.71, giving a surprising 9.23%.

In the past four quarters, the company has exceeded consensus EPS estimates four times.

Planet Fitness, which belongs to the Zacks Health & Fitness Services industry, posted revenue of $292.25 million for the quarter ended September 2024, beating the Zacks Consensus Estimate by 3%. This compares to last year’s revenue of $277.55 million. The company has increased consensus revenue estimates three times over the past four quarters.

Stock price stability based on recently released numbers and future earnings expectations will largely depend on management’s views on the earnings line.

Shares of Planet Fitness are up 16% since the start of the year versus the S&P 500’s 24.3% gain.

While Planet Fitness has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There are no easy answers to this important question, but one reliable step that can help investors deal with this is the company’s earnings outlook. This includes not only current consensus earnings expectations for the next quarter, but also how these expectations have changed recently.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings forecasts. Investors can track such developments on their own or rely on a tried-and-tested ratings tool like Zacks Rankings, which has an impressive track record of leveraging the power of earnings forecasts.

Prior to this earnings release, the revised estimates for Planet Fitness: mix. While the size and direction of the estimates may change based on the recently released earnings report, the current ranking translates to a Zacks Rank #3 (Hold) for the stock. Hence, the shares are expected to perform in line with the market soon. You can see the full list of today’s Zacks #1 (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next quarter and the current fiscal year change in the coming days. The current consensus EPS estimate is $0.62 on $299.3 million in revenue for the next quarter and $2.43 on $1.13 billion in revenue for the current fiscal year.

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