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Market-Share Gains Drive Planet Fitness, Inc. Earnings Higher

Planet Fitness (NYSE: PLNT) reported second-quarter results on Aug. 9. The fitness-center franchise is enjoying strong growth by catering to first-time and casual gym users.

Planet Fitness results: The raw numbers

What happened with Planet Fitness this quarter?

Planet Fitness opened 37 new stores in the first quarter -- and 197 over the last year -- bringing its total store count to 1,403 as of June 30, 2017. Systemwide same-store sales leapt 9%, marking the gym chain's 42nd consecutive quarter of positive same-store sales growth. Together, that helped drive a 17% year-over-year jump in total revenue, to $107 million.

CEO Christopher Rondeau explained Planet Fitness' competitive advantage over its rivals during a conference call with analysts.

Moreover, Planet Fitness is becoming more profitable as it expands, with adjusted EBITDA surging 30.3%, to $47.9 million. And adjusted net income increased 28.9%, to $21.7 million, or $0.22 per share.

Looking forward

These robust results prompted Planet Fitness to boost its 2017 full-year financial outlook, including:

  • Total revenue of $409 million to $415 million, up from a prior forecast of $405 million to $415 million.
  • Systemwide same-store sales growth of 8% to 9%, up from 7% to 8%.
  • Adjusted EPS of $0.76 to $0.78 versus $0.74 to $0.77

Rondeau said in a press release:

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Joe Tenebruso has no position in any stocks mentioned. The Motley Fool recommends Planet Fitness. The Motley Fool has a disclosure policy.