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Friday, March 1, 2024

Exponential Fitness outlook in line after blowout quarter

Shares of boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) jumped 26.6% in the morning session after the company reported fourth-quarter results that blew past analysts' revenue estimates, driven by better-than-expected equipment and merchandise sales to its franchisees. On the other hand, its operating margin and EPS fell short of Wall Street's projections as it produced less high-margin franchise revenue than expected. Looking ahead, its full-year 2024 revenue guidance was in line with estimates, while its EBITDA outlook of $138 million fell short. Overall, this was a decent quarter for Xponential Fitness.

Xponential Fitness's shares are quite volatile and over the last year have had 34 moves greater than 5%. But moves this big are very rare even for Xponential Fitness and that is indicating to us that this news had a significant impact on the market's perception of the business.

Xponential Fitness is up 5.1% since the beginning of the year, but at $13.31 per share it is still trading 59.8% below its 52-week high of $33.08 from April 2023. Investors who bought $1,000 worth of Xponential Fitness's shares at the IPO in July 2021 would now be looking at an investment worth $1,085.

https://finance.yahoo.com/news/xponential-fitness-xpof-shares-skyrocket-164036193.html

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