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Planet Fitness (PLNT) Q2 Earnings & Revenues Top Estimates
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Planet Fitness, Inc. (PLNT - Free Report) reported stellar second-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The quarter’s performance was driven by contributions from new store openings, higher royalty revenues and an asset-light growth model. The strength in the contributions from these factors was reflected in the year-over-year increase in system-wide same-store sales.
The company aims to define its growth prospects by capitalizing on meaningful opportunities across the industry, globally. Also, its aim to deliver enhanced shareholder value bodes well.
Earnings & Revenue Discussion
The company reported adjusted earnings per share (EPS) of 71 cents, which surpassed the Zacks Consensus Estimate of 65 cents by 9.2%. In the prior-year quarter, the company reported adjusted EPS of 65 cents.
Quarterly revenues of $300.9 million topped the consensus mark of $292 million by 2.9%. The top line also improved 5.1% year over year, driven by system-wide same-store sales growth of 4.2% year over year.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA was $127.5 million, up from $118.9 million reported in the year-ago quarter.
Segmental Performance
Franchise: Revenues of $107.8 million jumped 9.1% on a year-over-year basis. Our model predicted the metric to increase 9.7% from the prior-year level. The upside was driven by a rise of $6.3 million stemming from an uptick in royalty revenues, $1.8 million from new stores opened since Apr 1, 2023, and $1.3 million from higher royalties on annual fees.
The segment’s EBITDA was $77.4 million, up 17.1% year over year.
Corporate-owned Stores: Revenues of this segment amounted to $125.5 million, up 10.3% from the reported value of $113.8 million in the year-ago quarter. Our anticipated value was $122.9 million. The uptick can primarily be attributed to an increase of $6.6 million from corporate-owned stores and $5.1 million from new stores opened and acquired since Apr 1, 2023.
Segment EBITDA totaled $49.3 million, up 1.2% year over year.
Equipment: Segmental revenues totaled $67.7 million, down 8.4% year over year. We expected the metric to decline 11.6% year over year to $65.3 million. The downside was due to $4.7 million lower revenues from equipment sales to new franchisee-owned stores and $1.5 million lower revenues from equipment sales to existing franchisee-owned stores.
This segment’s EBITDA was $18.6 million, up 8.4% year over year.
Other Financial Details
As of Jun 30, 2024, Planet Fitness had cash and cash equivalents of $247 million compared with $275.8 million as of Dec 31, 2023. Long-term debt (net of current maturities) was $2.16 billion, up from $1.96 billion at the end of Dec 31, 2023. The current portion of the long-term debt at the end of the second quarter was $20.5 million, down from $20.8 million at Dec 30, 2023-end.
2024 Outlook Updated
Planet Fitness still expects revenues to increase in the 4-6% range from the 2023 level. System-wide same-store sales are still predicted in the 3-5% band. The company continues to anticipate new equipment placements to be between approximately 120 and 130 in franchisee-owned locations.
Adjusted EBITDA is still estimated to increase in the 7-9% range.
Adjusted net income is now envisioned to increase in the band of 4-6% from the 2023 level, down from the prior expected 6-8% range.
Management forecasts adjusted EPS to increase in the 7-9% range from the 2023 level. It anticipates adjusted shares outstanding to be approximately 86.5 million, down from the previous expectation of 88 million.
Hyatt Hotels Corporation (H - Free Report) delivered second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimated range of 3-5%.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
JAKKS Pacific, Inc. (JAKK - Free Report) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.
The company’s performance was hindered by soft sales in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in the Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.
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Planet Fitness (PLNT) Q2 Earnings & Revenues Top Estimates
Planet Fitness, Inc. (PLNT - Free Report) reported stellar second-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The quarter’s performance was driven by contributions from new store openings, higher royalty revenues and an asset-light growth model. The strength in the contributions from these factors was reflected in the year-over-year increase in system-wide same-store sales.
The company aims to define its growth prospects by capitalizing on meaningful opportunities across the industry, globally. Also, its aim to deliver enhanced shareholder value bodes well.
Earnings & Revenue Discussion
The company reported adjusted earnings per share (EPS) of 71 cents, which surpassed the Zacks Consensus Estimate of 65 cents by 9.2%. In the prior-year quarter, the company reported adjusted EPS of 65 cents.
Quarterly revenues of $300.9 million topped the consensus mark of $292 million by 2.9%. The top line also improved 5.1% year over year, driven by system-wide same-store sales growth of 4.2% year over year.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. Quote
Adjusted EBITDA was $127.5 million, up from $118.9 million reported in the year-ago quarter.
Segmental Performance
Franchise: Revenues of $107.8 million jumped 9.1% on a year-over-year basis. Our model predicted the metric to increase 9.7% from the prior-year level. The upside was driven by a rise of $6.3 million stemming from an uptick in royalty revenues, $1.8 million from new stores opened since Apr 1, 2023, and $1.3 million from higher royalties on annual fees.
The segment’s EBITDA was $77.4 million, up 17.1% year over year.
Corporate-owned Stores: Revenues of this segment amounted to $125.5 million, up 10.3% from the reported value of $113.8 million in the year-ago quarter. Our anticipated value was $122.9 million. The uptick can primarily be attributed to an increase of $6.6 million from corporate-owned stores and $5.1 million from new stores opened and acquired since Apr 1, 2023.
Segment EBITDA totaled $49.3 million, up 1.2% year over year.
Equipment: Segmental revenues totaled $67.7 million, down 8.4% year over year. We expected the metric to decline 11.6% year over year to $65.3 million. The downside was due to $4.7 million lower revenues from equipment sales to new franchisee-owned stores and $1.5 million lower revenues from equipment sales to existing franchisee-owned stores.
This segment’s EBITDA was $18.6 million, up 8.4% year over year.
Other Financial Details
As of Jun 30, 2024, Planet Fitness had cash and cash equivalents of $247 million compared with $275.8 million as of Dec 31, 2023. Long-term debt (net of current maturities) was $2.16 billion, up from $1.96 billion at the end of Dec 31, 2023. The current portion of the long-term debt at the end of the second quarter was $20.5 million, down from $20.8 million at Dec 30, 2023-end.
2024 Outlook Updated
Planet Fitness still expects revenues to increase in the 4-6% range from the 2023 level. System-wide same-store sales are still predicted in the 3-5% band. The company continues to anticipate new equipment placements to be between approximately 120 and 130 in franchisee-owned locations.
Adjusted EBITDA is still estimated to increase in the 7-9% range.
Adjusted net income is now envisioned to increase in the band of 4-6% from the 2023 level, down from the prior expected 6-8% range.
Management forecasts adjusted EPS to increase in the 7-9% range from the 2023 level. It anticipates adjusted shares outstanding to be approximately 86.5 million, down from the previous expectation of 88 million.
Zacks Rank & Recent Consumer Discretionary Releases
Planet Fitness currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hyatt Hotels Corporation (H - Free Report) delivered second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimated range of 3-5%.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
JAKKS Pacific, Inc. (JAKK - Free Report) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.
The company’s performance was hindered by soft sales in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in the Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.