Planet Fitness Q4 Earnings & Revenues Beat Estimates, Stock Down

Planet Fitness, Inc. PLNT reported stellar fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the results, the company’s shares fell 9.2% during trading hours yesterday. Negative investor sentiment was driven by concerns over the company’s 2025 outlook, which projected revenue and adjusted EBITDA growth of approximately 10%, slightly below investors’ expectations. Additionally, the company cited increased capital expenditures, projected to rise by 25% in 2025, as it invests in new club openings and corporate-owned locations. While Planet Fitness remains focused on long-term growth, the measured pace of franchise expansion and potential moderation of pricing benefits after June 2025 added to investor caution.PLNT’s Earnings & Revenue DiscussionThe company reported adjusted earnings per share (EPS) of 70 cents, beating the Zacks Consensus Estimate of 62 cents by 12.9%. In the prior-year quarter, the company reported adjusted EPS of 60 cents.Planet Fitness, Inc. Price, Consensus and EPS Surprise Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. QuoteQuarterly revenues of $340.5 million topped the consensus mark of $327 million by 4.2%. The top line also improved 19.4% year over year, driven by system-wide same-club sales growth of 5.5% year over year.Adjusted EBITDA during the quarter came in at $130.8 million, up from $114.3 million reported in the year-ago quarter.PLNT’s Segmental PerformanceFranchise: During the fourth quarter, the segment revenues rose 11% year over year to $109 million. Our model predicted the metric to increase 7.8% from the prior-year level. This upside was driven by a rise of $5.6 million, stemming from an uptick in royalty revenues, $1.3 million from new clubs opened since Oct. 1, 2023, and $0.7 million from higher royalties on annual fees.The segment’s EBITDA was $74.7 million, up 9.8% year over year. Our estimate for the metric was $77.1 million.Corporate-owned Clubs: Revenues of this segment amounted to $126.3 million, up 8.5% year over year. This uptick can be attributed to an increase of $3.6 million from corporate-owned clubs and $6.4 million from new clubs opened and acquired since Oct. 1, 2023. Our anticipated value was $130.7 million.Segment EBITDA totaled $46.4 million, up 1.8% year over year. Our estimate for the metric was $47.9 million.Equipment: Segmental revenues totaled $105.1 million, up 49.2% year over year. We expected the metric to rise 15.9% year over year. This upside was due to higher revenues from equipment sales to existing and new franchisee-owned clubs.This segment’s EBITDA was $29.9 million, up 78.3% year over year. Our estimate for the metric was $13.7 million.Other Financial Details of PLNTAs of Dec. 31, 2024, Planet Fitness had cash and cash equivalents of $293.2 million compared with $275.8 million as of Dec. 31, 2023. Long-term debt (net of current maturities) was $2.15 billion, up from $1.96 billion as of Dec. 31, 2023.2024 HighlightsTotal revenues in 2024 came in at $1.18 billion compared with $1.07 billion reported in 2023.Adjusted EBITDA in 2024 came in at $487.7 million compared with $435.4 million reported in 2022.In 2024, adjusted net income per share (diluted) came in at $2.59 compared with $2.24 reported in the previous year.2025 Outlook of Planet FitnessFor 2025, the company expects new equipment placements to be approximately 130 to 140  franchisee-owned locations, with system-wide new club openings projected to be around 160 to 170 locations.System-wide same-club sales growth in 2025 is expected to be in the 5-6% range. The company anticipates revenues to increase by approximately 10% over 2024 levels.Adjusted EBITDA for 2025 is estimated to grow by approximately 10%, while adjusted net income is expected to increase in the 8-9% range. Adjusted diluted EPS is projected to rise in the 11-12% range, based on adjusted diluted weighted-average shares outstanding of approximately 84.5 million.For 2025, the company expects net interest expense to be approximately $86 million. Capital expenditures are projected to increase by approximately 25%, driven by additional corporate-owned clubs. Depreciation and amortization are expected to remain consistent with 2024 levels.PLNT’s Zacks RankPLNT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Consumer Discretionary ReleasesHilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.Mattel, Inc. MAT reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year quarter.Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR): Free Stock Analysis Report Mattel, Inc. (MAT): Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report Planet Fitness, Inc. (PLNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks