Planet Fitness (PLNT) Q1 Earnings Report Preview: What To Look For

Inclusive gym franchise company (NYSE:PLNT) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Planet Fitness beat analysts' revenue expectations by 1% last quarter, reporting revenues of $285.1 million, up 1.4% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Planet Fitness a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Planet Fitness's revenue to grow 11.9% year on year to $248.6 million, slowing from the 19% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Planet Fitness has missed Wall Street's revenue estimates three times over the last two years.

Looking at Planet Fitness's peers in the leisure facilities segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Live Nation delivered year-on-year revenue growth of 21.5%, beating analysts' expectations by 16.6%, and Life Time reported revenues up 16.8%, topping estimates by 1.4%. Live Nation traded up 7.2% following the results while Life Time was also up 3.4%.

Read our full analysis of Live Nation's results here and Life Time's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the leisure facilities stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Planet Fitness is down 4.8% during the same time and is heading into earnings with an average analyst price target of $74.8 (compared to the current share price of $62.02).

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