Planet Fitness, Inc. Just Released Its Annual Results And Analysts Are Updating Their Estimates
There's been a notable change in appetite for Planet Fitness, Inc. (NYSE:PLNT) shares in the week since its full-year report, with the stock down 14% to US$75.77. Results were roughly in line with estimates, with revenues of US$689m and statutory earnings per share of US$1.41. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Planet Fitness
Taking into account the latest results, the most recent consensus for Planet Fitness from 14 analysts is for revenues of US$775.9m in 2020, which is a solid 13% increase on its sales over the past 12 months. Statutory earnings per share are expected to soar 26% to US$1.78. Before this earnings report, analysts had been forecasting revenues of US$782.8m and earnings per share (EPS) of US$1.76 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$86.14, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Planet Fitness analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$69.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
It can also be useful to step back and take a broader view of how analyst forecasts compare to Planet Fitness's performance in recent years. We would highlight that Planet Fitness's revenue growth is expected to slow, with forecast 13% increase next year well below the historical 17%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 8.4% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkPlanet Fitness will grow faster than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$86.14, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Planet Fitness going out to 2024, and you can see them free on our platform here..
You can also see whether Planet Fitness is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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