PLNT trade ideas
Planet Fitness, Inc. Announces Accelerated Share Repurchase ProgPLNT: Planet Fitness, Inc.
2019-12-04 17:35:00
Planet Fitness, Inc. Announces Accelerated Share Repurchase Program
$PLNT Get into Planet fitness, Blowout earnings and raised guidance , whats not to love.
System-Wide Same Store Sales Increased 7.9%
41 New Planet Fitness Stores Opened
Raises Full Year Outlook
HAMPTON, N.H., Nov. 7, 2019 /PRNewswire/ -- Today, Planet Fitness, Inc. (NYSE: PLNT) reported financial results for its third quarter ended September 30, 2019.
Third Quarter Fiscal 2019 Highlights
Total revenue increased from the prior year period by 22.1% to $166.8 million.
System-wide same store sales increased 7.9%.
Net income attributable to Planet Fitness, Inc. was $25.8 million, or $0.31 per diluted share, compared to net income attributable to Planet Fitness, Inc. of $17.5 million, or $0.20 per diluted share in the prior year period.
Net income increased 45.0% to $29.7 million, compared to net income of $20.5 million in the prior year period.
Adjusted net income(1) increased 19.5% to $33.1 million, or $0.36 per diluted share, compared to $27.7 million, or $0.28 per diluted share in the prior year period.
Adjusted EBITDA(1) increased 22.2% to $65.7 million from $53.8 million in the prior year period.
41 new Planet Fitness stores were opened during the period, bringing system-wide total stores to 1,899 as of September 30, 2019.
(1) Adjusted net income and Adjusted EBITDA are non-GAAP measures. For reconciliations of Adjusted EBITDA and Adjusted net income to U.S. GAAP ("GAAP") net income see "Non-GAAP Financial Measures" accompanying this press release.
"We delivered another quarter of very solid results," stated Chris Rondeau, Chief Executive Officer. "High-single digit system-wide same store sales, combined with accelerated new store openings and our franchisees' continued commitment to re-equip their existing clubs with new equipment, fueled a 22% increase in total revenue. The third quarter was also highlighted by our highest-attended franchisee conference to date with over 1,500 attendees from across the system coming together to share ideas on how to strengthen the Planet Fitness brand, enhance the member experience and drive new member sign ups. Based on several factors including our experienced franchisees and their ability to execute, the significant amount of projected store expansion still ahead, and our increasing marketing spend, I am confident that the business is well positioned to drive continued growth and increased profitability."
Operating Results for the Third Quarter Ended September 30, 2019
For the third quarter 2019, total revenue increased $30.2 million or 22.1% to $166.8 million from $136.7 million in the prior year period which included system-wide same store sales growth of 7.9%. By segment:
Franchise segment revenue increased $11.9 million or 21.7% to $66.7 million from $54.8 million in the prior year period, driven primarily by higher royalty revenue as a result of new stores opened since July 1, 2018, an 8.1% increase in same store sales, and a higher average royalty rate;
Corporate-owned stores segment revenue increased $5.3 million or 15.1% to $40.7 million from $35.4 million in the prior year period, $2.7 million of which is from corporate-owned stores opened or acquired since July 1, 2018, and another $1.4 million of which is from corporate-owned same store sales growth of 4.9%, and higher annual fee revenue of $1.1 million; and
Equipment segment revenue increased $12.9 million or 27.9% to $59.4 million from $46.4 million in the prior year period, driven by an increase in replacement equipment sales to existing franchisee-owned stores.
For the third quarter of 2019, net income attributable to Planet Fitness, Inc. was $25.8 million, or $0.31 per diluted share, compared to net income attributable to Planet Fitness, Inc. of $17.5 million, or $0.20 per diluted share in the prior year period. Net income was $29.7 million in the third quarter of 2019 compared to $20.5 million in the prior year period. Adjusted net income increased 19.5% to $33.1 million, or $0.36 per diluted share, from $27.7 million, or $0.28 per diluted share in the prior year period. Adjusted net income has been adjusted to reflect a normalized federal income tax rate of 26.6% for the current year period and 26.3% for the comparable prior year period and excludes certain non-cash and other items that we do not consider in the evaluation of ongoing operational performance (see "Non-GAAP Financial Measures").
Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in the evaluation of ongoing operational performance (see "Non-GAAP Financial Measures"), increased 22.2% to $65.7 million from $53.8 million in the prior year period.
Segment EBITDA represents our Total Segment EBITDA broken down by the Company's reportable segments. Total Segment EBITDA is equal to EBITDA, which is defined as net income before interest, taxes, depreciation and amortization (see "Non-GAAP Financial Measures").
Franchise segment EBITDA increased $7.3 million or 19.6% to $44.3 million driven by royalties from franchised stores opened since July 1, 2018, a higher average royalty rate and higher same store sales of 8.1%;
Corporate-owned stores segment EBITDA increased $1.5 million or 9.9% to $16.8 million driven primarily by an increase in corporate-owned same store sales of 4.9%, higher annual fee revenue and from additional clubs opened or acquired since July 1, 2018; and
Equipment segment EBITDA increased by $4.1 million or 42.3% to $13.7 million driven by an increase in replacement equipment sales to existing franchisee-owned stores.
2019 Outlook
For the year ending December 31, 2019, the Company now expects:
Total revenue to increase approximately 19% as compared to the year ended December 31, 2018, up from prior guidance of approximately 18%;
Total new store equipment sales in the high end of the range of 250 to 260;
System-wide same store sales of approximately 8.6%, up from prior guidance of approximately 8%;
Adjusted net income to increase approximately 21% as compared to the year ended December 31, 2018, up from prior guidance of approximately 20%; and
Adjusted net income per diluted share to increase approximately 28% to $1.56 as compared to the year ended December 31, 2018, up from prior guidance of approximately 26%.
$PLNT Planet Fitness, value for members and InvestorsExtremely low subscription costs for members result in the no frills fitness facilities continuing to have high demand.
Locations tend to be in high population density areas, close to work, retail and residential facilities.
The subscription service is so low that even those that fail to make use of the facility tend to forget about cancelling.
Sold off in sympathy with stocks such as NASDAQ:PTON .
Stock remains 25% off recent highs, selling overdone.
Average analysts recommendation $81 | Overweight
P/E 50.43
Company profile
Founded in 1992 in Dover, N.H., Planet Fitness (NYSE: PLNT) is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. With more than 1,000 locations in 47 states, the District of Columbia, Puerto Rico, Canada, and the Dominican Republic, Planet Fitness' mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. More than 90% of Planet Fitness stores are owned and operated by independent business men and women.
PLNT support foundPlanet fitness seems to have found support at the $56.80 level which acted as resistance in late 2018 and then as support in early 2019 once that level was broke. I'd look for a long-term long position into 2020.
Bing bing bing, it's Ricochet RabbitThis this ricocheted off the 200 sma hard enough to propel it right back over the 20 sma. The macd is also just about ready to crossover bullish, and it looks like this rabbit is ready to run. BTW for you younger folks, Ricochet Rabbit was a cartoon in the 70's :)
$PLNT Planet Fitness looks bullish upto $92=====PRICE TARGET $92======.
OPTION TRADERS BET BIG ON $70 OCTOBER CALL.
FANTASTIC TRENDLINE
INVALIDATE LONG ON DROP BELOW.
Run with Planet Fitness into earnings. Major benefactors of they lazy consumer who can't even be bothered cancelling their unused subscription/membership, very much like Netflix even if you don't watch it, it is so cheap that best just keep it. High membership and low usage is a great problem to have as staffing levels and operating costs are greatly reduced. Earnings approach next week and the chart is setting up in a bullish manner with ascending triangle developing.
AVERAGE ANALYSTS PRICE TARGET $80
AVERAGE ANALYSTS RECOMMENDATION BUY
P/E RATIO 77
SHORT INTEREST 6%
COMPANY PROFILE
Planet Fitness, Inc. engages in the operation and franchise of fitness centers. It operates through the following segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment includes operations related to the company's franchising business in the U.S., Puerto Rico, Canada, the Dominican Republic, and Panama. The Corporate-Owned Stores segment deals with the operations with respect to all corporate-owned stores throughout the U.S. and Canada. The Equipment segment sells equipment to franchisee-owned stores. The company was founded by Michael Grondahl and Marc Grondahl in 1992 and is headquartered in Newington, NH.
PLNT Buy Opportunity Planet Fitness has had a strong uptrend above the 180 EMA throughout the year. Has a strong chance of reaching $82 within one week for a 5% return. Planet Fitness will reach over $100 for a long term hold.
20190617 Use of HHHC tool with a monthly chart of PLNT stock.Historical study of using HHHC tool in EasyBee59 for TradingView with a monthly chart of a US stock PLNT:
In this chart, a white supply line connecting the highest points of the first two months. When the monthly chart broke above this supply line and the first "HHHC" or "Higher High Higher Close" label was written on the chart by EasyBee59, a buy order was hypothetically sent for a long position at the open price of the next month. If this long position was held up until now (20190617), the return of this investment could have reached 400%.
1D PLANET FITNESS BUY ON PULLBACKDay chart shows
1w support level
1w trendline
Day bearish pullback bars
Pullback Buy zone
15m chart shows
1w trendline buy limit @ 69.00
1w support level buy limit @ 68.00
WHY PLANET FITNESS IS THE #1 STOCK TO BUY ON PULLBACKS Start for $1 - Monthly membership is $10 - $20 mo. go to any location
Free T-shirts, bagels, pizza
Clean beautiful gyms
Equipment well maintained - Employees always nice with a no judgement zone
They have dialed in this gym experience
Weekly chart shows they have dialed it in for years
Most of weekly volume spikes are on bullish weeks
People are interested in this chart - volume is going up - volatility is going up
There is a continuous increase in the trend line angle
Anytime your trend line does a dramatic increase like this is called a bump and run.
The bump and run trend line is usually considered bearish but there are strong bullish signs still
Drilling down to 1D chart , notice hugh gap down on May 3rd
Gap down on positive earnings news
Drove down to 15m chart to find where volume spike came from
First few 15m candles drove price back up so gap spike from 1D came from positive moves
Most of the traders want this pair long
When most traders want price to go long you are probably in for a pullback
Price has been pushing up for some time so expecting some consolidation
Watch for an ascending triangle to develop
Sell when you see pullback on reduced volume and volatility
Buy at trend line bounce
If pullback did not come with reduced volume/volatility then enter with smaller size.
Use ATR to determine SL (1.5xATR)and TP (1xATR). When in profit take some off and move SL to break even.
PLNT support and resistance linesthese are ranges determined solely on the ups and downs and resistance and support lines that are dictated in the chart
PLANET SHORTS. Jk. Be patient... we may have another leg upI'm showing this chart in this fashion for a few reasons. Let's take a look at the EW count. We have just completed wave 3 of 3 of the largest count. Currently going into wave 4 of 3 and should wrap this up in the next couple days. The EW count suggesting that we still have another leg up is justified by the 4 overlaying indicators here- let's take a look.
RSI: yes we bounced off the divergence of the daily, but we have a ways to go before reaching a critical limit suggested by the supporting RSI. The EW count suggests we can continue to be extended. We took quite a hit on the RSI when we fell ~3% last week, leaving room to continue the upward price action.
MACD- tapering off but still bullish.
ADX- Green is above the red, still bullish.
ICC - falling out of the sell zone, but this chart does not have an extensive history so I wouldnt trust this indicator as much. What we can deduce from this is that we are heading toward the neutral zone. This should deter us from any impulsive selling.
Fib time zones- the next wave lines up well if you count the 1 to the 2. WE AREN'T THERE YET.
Ultimately, if you believe the EW count, and interpret that the indicators are not suggesting any impulsive selling, then you should wait to short this. Major indexes suggest a small pullback is coming. This may come right before earnings season (early this week), and allow for a setup to go long for wave 5's.
See my long term chart for what the heck is still to come. GOOD LUCK.
Resistance trend starting I feel it will touch the resistance of 60's before hitting back into bullish form.
Even the indicators have just started showing down trend. I would see this weekend and take position based of it.
