On Thursday, November 4, Planet Fitness Inc. (NYSE: PLNT) released its third-quarter results for 2021. The announcement fueled an increase in stock prices, which surged nearly 12% to $92.25 in trade on the same day.
Planet Fitness Inc. (PLNT) reported that its sales climbed 46.4 percent year over year to $154.3 million in the third quarter. New gym openings and a 7.2 percent rise in like-for-like sales at existing gyms fueled the surge. Planet Fitness is stronger as a result of the pandemic, according to management, and was able to return to positive, consistent revenue growth in the third quarter.
Furthermore, PLNT has had the highest level of steady net attendance increase in its history. As a result, the fitness network has assuaged some investors’ concerns that the epidemic would educate people to workout at home. People have a habit of returning to gyms whenever feasible.
Planet Fitness may be able to take advantage of the comparatively favourable market conditions for fitness centres: around 22% of small gyms in the United States were forced to close due to the pandemic’s pressure. Planet Fitness, which is quickly growing its network, may be able to fill the need.
Planet Fitness’ profitability improved significantly in the third quarter, with adjusted net income climbing to $22 million, or $0.25 per share.
Planet Fitness Inc. (PLNT) has improved its projection for the whole year of 2021 as a consequence of strong third-quarter results. By the end of the year, the firm anticipates 110 to 120 more gyms to open. The revenue will be in the $570 million to $580 million range. Earnings per share adjusted for inflation might rise from $0.75 to $0.80 per share.