Proactive Investors - Planet Fitness (NYSE:PLNT) shares surged almost 10% as the gym franchise’s second quarter earnings topped estimates.
Revenue grew 5.1% year-over-year to $300.9 million, ahead of estimates of $292.4 million.
Adjusted earnings per share were $0.71, compared to the Street consensus of $0.65.
It exited the quarter with 2,617 total stores after 18 new Planet Fitness (NYSE:PLNT) stores were opened during the period.
"During the quarter, we continued to demonstrate the unique strength of our asset-light, highly franchised business model by refinancing a portion of our debt and entering a $280 million accelerated share repurchase program as we strive to deliver enhanced shareholder value,” Planet Fitness CEO Colleen Keating said in a statement.
"As we enter our next chapter, we are committed to further defining our growth ambition and capitalizing on the meaningful opportunities across the industry both in the U.S. and internationally. This includes maintaining a steadfast focus on delivering an unparalleled member experience, evolving our brand messaging and operating under the principle that when our franchisees win, we win.”
Planet Fitness reiterated its 2024 outlook, continuing to expect revenue to increase by 4% to 6% and adjusted EPS to increase by 7% to 9%.
Shares of Planet Fitness were up 9.5% at $78.83 in the early afternoon on Tuesday.