Planet Fitness Inc.’s stock went up 11% in premarket trading on Tuesday after the fitness chain reported an 18% increase in profit, which was higher than what analysts had expected for adjusted profit and revenue.
As of June, Colleen Keating became CEO of the company. She said that the “unique strength of our asset-light, highly franchised business model” helped the business.
Planet Fitness PLNT -0.54% said that its net income rose from $41.14 million, or 48 cents a share, in the previous quarter to $48.64 million, or 56 cents a share, in the second quarter.
The gym owner’s adjusted profit of 71 cents a share was higher than the 60 cents a share that FactSet thought it would be.
It made $300.94 million in sales, up 5% from $286.4 million in the same quarter last year. This was a lot more than the $288.6 million that Wall Street analysts had predicted.
During the quarter, the business refinanced some of its debt and gave the go-ahead for an accelerated share-buyback effort worth $280 million.
Planet Fitness stock is down 1.4% so far in 2024, while the S&P 500 has gone up 8.7%.
