What Happened?
Shares of inclusive gym franchise company (NYSE:PLNT) fell 9.7% in the morning session after the company reported weak fourth-quarter earnings: The 2025 outlook raised concerns, with same-store sales growth projected at 5% to 6%, a slower pace than some investors anticipated. Overall, while the quarter delivered strong top- and bottom-line performance, the weaker-than-expected guidance overshadowed the results, contributing to investor uncertainty.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Planet Fitness? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Planet Fitness’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 11.1% on the news that the company reported second-quarter earnings results. Planet Fitness beat analysts' revenue expectations. Its EPS also outperformed Wall Street's estimates. An accelerated share repurchase announcement shows that it is generating a healthy amount of cash. Overall, this quarter seemed fairly positive, and shareholders should feel optimistic.
Planet Fitness is down 10% since the beginning of the year, and at $89.58 per share, it is trading 17.9% below its 52-week high of $109.07 from January 2025. Investors who bought $1,000 worth of Planet Fitness’s shares 5 years ago would now be looking at an investment worth $1,104.
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