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Planet Fitness (PLNT) stock is feeling the burn ahead of Tuesday's market close, dropping nearly 10% despite topping fourth quarter adjusted earnings and revenue estimates.
Julie Hyman and Josh Lipton break down how the negative stock's reaction appears to be a result of the gym chain's earnings guidance.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Luke Carberry Mogan.
shares of Planet Fitness are falling. The company reporting fourth quarter earnings and missing on earnings growth projections. You can see the stock down almost 10% here. Uh, so gym operator offers a forecast for annual adjusted earnings per share growth that does miss. They see adjusted EPS growth of 11 to 12%, estimate was more like 13%. The execs trying to sound a confident tone here. They talked about strong results in 24, 19.7 million members, revenue growth of more than 10%, growing adjusted EBITDA by about 12%, but that is not good enough for investors today.
Yeah, Planet Fitness has had some management shakeups over the past couple of years here. Um, so just putting that in throwing that in as well. The stock has gained quite a bit. It's up more than 40% over the over the past 12 months. So kind of let's put that into context as well when we look at this disappointing forecast and about uh the the decline here. Um, the company is planning to open new clubs about 160 to 170 new locations. So we'll see how that feeds into the forecast as well.
