: Planet Fitness’ stock surges as profit and revenue beat expectations, growth outlooks increased

Shares of Planet Fitness Inc. PLNT surged 8.8% in premarket trading Tuesday, to reverse an earlier indication of weakness, after the fitness center operator reported third-quarter profit and revenue that rose above expectations, while same-store sales matched expectations. Net income rose to $39.1 million, or 46 cents a share, from $26.9 million, or 32 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 59 cents beat the FactSet consensus of 55 cents. Total revenue grew 13.6% to $277.6 million, above the FactSet consensus of $268.2 million. Same-store sales, or sales from stores open more than a year, increased 8.4% to match the FactSet consensus. The company said it continues to search for a permanent chief executive officer, after long-time CEO Chris Rondeau was ousted in mid-September. For 2023, the company increased its growth guidance for revenue to 14% from 12% and for adjusted EPS to 35% from 34%, while keeping its same-store sales growth outlook at the high single-digit percentage range. The stock has dropped 10.7% over the past three months while the S&P 500 SPX has slipped 3.4%.

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