Planet Fitness (PLNT) PT Raised to $26 at Imperial Capital
- Wall Street flat as telecom gains fail to counter oil drop
- Equinix (EQIX) Announces $3.6B Acquisition of Data Center Portfolio from Verzion (VZ)
- Deal Progress Said to Slow as Johnson & Johnson (JNJ) Puts Actelion (ALIOY) Under Microscope - Source
- Trump Wants to Cancel New Air Force One Order with Boeing (BA)
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Imperial Capital analyst George Kelly reiterated an Outperform rating and raised his price target on Planet Fitness (NYSE: PLNT) to $26.00 (from $25.00) following Q3 results.
3Q16 results summary. On 10/26/16, Planet Fitness reported revenue and adjusted EBITDA of $87mn and $35mn, respectively, versus our estimates of $80mn and $32mn. Results benefitted from system wide same store sales growth of 10%. Total membership grew 21% year-over-year (yoy) to 8.7mn. We believe Planet’s brand and model continue to resonate with consumers.
Franchise business. The franchise business (excluding commissions) grew 43% yoy, well above recent growth, due to higher franchise fees and growth in franchise level revenue. The owned club base also delivered yoy growth, albeit at a slower rate.
Guidance update. Management raised 2016 guidance for the third time this year. Revenue and EPS guidance grew to $373mn–378mn and $0.66–0.67 versus $366mn–372mn and $0.62–0.65.
Management reiterated same store sales growth of HSD.
Special dividend. Management announced that it is hoping to expand its credit facility and will utilize it and existing cash to fund a $280mn special dividend. Leverage would grow to 4.6x.
Shares of Planet Fitness closed at $21.16 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- Cowen Downgrades Nike (NKE) to Neutral; Sees Lower Guidance
- FBR Capital Raises Price Target on Matador Resources (MTDR) Following Announced Offerings
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
Related EntitiesImperial Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!