Inclusive gym franchise company (NYSE:PLNT) announced better-than-expected revenue in Q4 CY2024, with sales up 19.4% year on year to $340.5 million. Its non-GAAP profit of $0.70 per share was 13.4% above analysts’ consensus estimates.
Planet Fitness (PLNT) Q4 CY2024 Highlights:
Revenue: $340.5 million vs analyst estimates of $324.4 million (19.4% year-on-year growth, 4.9% beat)
Adjusted EPS: $0.70 vs analyst estimates of $0.62 (13.4% beat)
Adjusted EBITDA: $130.8 million vs analyst estimates of $119.2 million (38.4% margin, 9.8% beat)
2025 Guidance: 5-6% same-store sales growth (miss vs expectations of 6.2% growth)
Operating Margin: 26.4%, up from 25% in the same quarter last year
Free Cash Flow Margin: 2.1%, down from 4.2% in the same quarter last year
Same-Store Sales rose 5.5% year on year (7.7% in the same quarter last year)
Market Capitalization: $8.35 billion
"We had strong results in 2024 and closed out the year with 19.7 million members, posting revenue growth of more than 10% and growing Adjusted EBITDA by approximately 12%," said Colleen Keating, Chief Executive Officer.
Company Overview
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE:PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Leisure Facilities
Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. While any business can experience short-term success, top-performing ones enjoy sustained growth for years. Over the last five years, Planet Fitness grew its sales at a 11.4% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds.
https://finance.yahoo.com/news/planet-fitness-nyse-plnt-reports-113628275.html
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