Shares in Planet Fitness Inc. (NYSE: PLNT) were lower on Friday after the company reported dismal fourth quarter results. Revenue has been severely impacted due to the coronavirus pandemic and the resulting gym closure.
Planet Fitness was also unable to provide guidelines in 2021.
It’s not all bad news, however, and analysts believe it could be bottom for Planet Fitness. With the launch of vaccines, Planet Fitness plans to restart its marketing campaign, which has been suspended since March 2020, saying the brunt of the lost revenue came from the inability to attract new members as opposed to cancellations despite the suspension of payments from existing customers while the gyms were closed.
On the conference call, Chris Rondeau, CEO of Planet Fitness emphasized that 90% of the locations have reopened to date.
Planet Fitness reported adjusted earnings per share of 17 cents for the fourth quarter, missing the 22 cents estimate, and total revenue of $ 133.8 million, missing the Street estimate of $ 137.2 million has been.
Planet Fitness Reviews, Price Targets: DA Davidson maintained a buy rating and raised the price target from USD 80 to USD 93.
Raymond James maintained a market perform rating.
Roth Capital maintained a neutral rating and increased its price target from USD 62 to USD 75.
Wedbush maintained a neutral valuation and a target price of $ 69.
Raymond James On Planet Fitness: Although Planet Fitness revenues fell below expectations, it was expected due to the impact of the pandemic, analyst Joseph Altobello said in a note.
Membership may have bottomed out, the analyst said, adding that reduced business prospects could weigh on future profitability.
Despite an expected loss of some members over the course of the pandemic, Altobello said Planet Fitness added 300,000 new memberships in January, which he finds encouraging.
Altobello estimates that Planet Fitness has forecast 75-100 new stores in 2021, as 130 new stores opened in 2020.
Wedbush On Planet Fitness: Despite the speed at which Planet Fitness stores and gyms can fully open, there are further delays in the company’s recovery, analyst James Hardiman said in a note.
This is due to an apparent acceleration in member terminations late in the fourth quarter and the time it will take to restart the new club pipeline, the analyst said.
Some members may be reluctant to return because they remain afraid to exercise, among other things, he said.
Planet Fitness securing 300,000 more members in January is a positive sign – but also an expected one, Hardiman said, as this is New Year’s resolutions season
Like Altobello, Hardiman said he found the company’s low number of planned new franchise openings for 2021 disappointing.
DA Davidson On Planet Fitness: Analyst Linda Bolton Weiser cut 2021 estimates for Planet Fitness based on a lower number of planned store openings in 2021, lower reported equipment sales, and revenue growth that she doesn’t expect to see positive by the fourth quarter.
The company has the potential for strong growth in 2022, the analyst said.
Roth Capital On Planet Fitness: Roth is also slashing its estimates for 2021 due to fewer planned gym openings, a slower rise in new memberships, and lower equipment sales, analyst George Kelly said in a note.
The analyst said he expects a gradual rebound in 2021 and notes that typical seasonality may not happen this year as Planet Fitness sees above-average membership growth over the summer.
Planet Fitness reported $ 1.8 billion in debt, and Kelly believes paying off the debt is a high priority for the company.
PLNT price action: Planet Fitness shares fell 1.65% to $ 78.45 on the last Check Friday.
Latest reviews for PLNT
| date | Festivals | action | From | To |
|---|---|---|---|---|
| February 2021 | DA Davidson | Maintains | to buy | |
| February 2021 | Roth Capital | Maintains | Neutral | |
| Jan 2021 | JP Morgan | Downgrades | Obesity | Neutral |
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