Markets

Planet Fitness (PLNT) Q2 Earnings Miss Estimates, Fall Y/Y

Planet Fitness, Inc. PLNT reported dismal second-quarter 2020 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Moreover, the top and the bottom lines declined sharply year over year owing to the coronavirus pandemic. Following the results, shares of the company fell 3.1% during after-hour trading on Aug 4.

Owing to the uncertainty tied to the crisis, the company has withdrawn its 2020 guidance.

Quarterly Details

The company reported adjusted loss per share of 32 cents, wider than the Zacks Consensus Estimate of a loss of 17 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 45 cents.

Planet Fitness, Inc. Price and EPS Surprise

 

Planet Fitness, Inc. Price and EPS Surprise

Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote

Quarterly revenues of $40.2 million missed the consensus mark of $43.3 million by 2.5%. The top line also declined 77.9% from the year-ago quarter primarily due to the dismal performance across Franchise, Corporate-owned Stores and Equipment segments.

Franchise revenues fell 70.8% year over year to $21 million. The Corporate-owned Stores segment’s revenues declined 76.3% year over year to $9.4 million. In the Equipment segment, revenues declined 86% year over year to $9.8 million owing to lower equipment sales to new and existing franchisee-owned stores.

Moreover, EBITDA in the Franchise segment declined 92.9% year over year to $3.5 million. The decline was primarily attributed to temporary shutdowns owing to COVID-19. At the Corporate-owned stores segment, EBITDA fell 135% year over year to ($6.3) million. EBITDA in the Equipment segment declined 92.2% year over year to $1.3 million.

Total adjusted EBITDA at the end of the second quarter deteriorated to ($9.3) million from $76.5 million in the year-ago quarter.

Other Financial Details

As of Jun 30, 2020, cash and cash equivalents totaled $423.6 million compared with $436.3 million as of Dec 31, 2019. Long-term debt, net of current maturities, amounted to $1,682 million at the end of second-quarter 2020 compared with $1,687.5 million at 2019-end.

Zacks Rank & Stocks to Consider

Planet Fitness currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. MCRI, Bluegreen Vacations Corporation BXG and Camping World Holdings, Inc. CWH.  Monarch Casino sports a Zacks Rank #1 (Strong Buy), while Bluegreen Vacations and Camping World carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings in 2021 for Monarch Casino, Bluegreen Vacations and Camping World are expected to surge 1033.4%, 208.8% and 75.8%, respectively.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


Click to get this free report

Camping World Holdings Inc. (CWH): Free Stock Analysis Report

Bluegreen Vacations Corporation (BXG): Free Stock Analysis Report

Monarch Casino Resort, Inc. (MCRI): Free Stock Analysis Report

Planet Fitness, Inc. (PLNT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More