Planet Fitness, Inc. PLNT is scheduled to report third -quarter 2024 results on Nov. 7, before the opening bell.
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In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 9.2% and 2.9%, respectively. Also, both metrics increased on a year-over-year basis.
It posted better-than-expected earnings in each of the trailing four quarters, with an average surprise of 7%.
PLNT’s Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has decreased to 57 cents from 58 cents in the past 30 days. The estimated figure indicates a decline of 3.4% from the 59 cents per share reported in the year-ago quarter.
Planet Fitness, Inc. Price and EPS Surprise
Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote
The consensus mark for revenues stands at $283.7 million, implying growth of 2.2% from the year-ago reported figure of $277.6 million.
Factors to Note for Planet Fitness’ Q3 Results
Planet Fitness’ third-quarter top line is likely to have increased year over year, driven by its strong franchise model, higher royalty revenues and international expansion initiatives. Also, the favorable pricing of its membership cards and new pricing opportunities’ considerations are likely to have aided the company’s performance in the to-be-reported quarter.
Per our model, third-quarter total Franchise and Corporate-Owned Stores revenues are expected to have increased year over year by 6.7% and 6.9% to $104.8 million and $121.1 million, respectively.
However, PLNT's equipment segment is expected to have shown a decline in revenues, due to lower sales of equipment to new and existing franchisee-owned stores. For the to-be-reported quarter, our model predicts total Equipment revenues to have declined 8% year over year to $60.9 million.
The inflation concerns remain a potent headwind. The increase in materials, shipping, equipment and labor costs is likely to have negatively impacted the company’s bottom line in the to-be-reported quarter. We expect total operating expenses to have increased 4.9% year over year to $215.2 million.
What the Zacks Model Unveils for PLNT
Our proven model does not conclusively predict an earnings beat for Planet Fitness this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.
PLNT’s Earnings ESP: PLNT has an Earnings ESP of -1.98% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
PLNT’s Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.
Bowlero Corp. BOWL has an Earnings ESP of +10.20% and a Zacks Rank of 2 at present.
BOWL’s earnings for the to-be-reported quarter are expected to increase 1300% from the prior-year reported level. It posted better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, with the negative average surprise being 119.4%.
Norwegian Cruise Line Holdings Ltd. NCLH currently has an Earnings ESP of +3.28% and a Zacks Rank of 2.
NCLH’s earnings for the to-be-reported quarter are expected to increase 150% from the prior-year reported level. It posted better-than-expected earnings in three of the trailing four quarters and missed on the other one occasion, with the average surprise being 4.2%.
OneSpaWorld Holdings Limited OSW has an Earnings ESP of +1.21% and flaunts a Zacks Rank of 1 at present.
OSW’s earnings for the to-be-reported quarter are expected to increase 75% from the prior-year reported level. It posted better-than-expected earnings in two of the trailing four quarters, met on one occasion and missed once, with an average negative surprise of 1.2%.
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