Planet Fitness (NYSE:PLNT) shares surged in early Tuesday trading after the gym franchise reported third-quarter earnings that impressed investors and raised its full-year 2023 guidance.
Shares of Planet Fitness are up more than 14% at the time of writing, trading at levels last seen in early August.
The company's Q3 EPS was $0.59, $0.04 better than the analysts' estimate of $0.55, while revenue for the quarter came in at $277.6 million, up 13.6% YoY and above the consensus estimate of $268.26 million.
System-wide same-store sales increased 8.4%, while the company ended the third quarter with more than 18.5 million total members.
"With our industry-leading results, we're adjusting our store-level return model to further improve the attractiveness of opening and operating Planet Fitness stores in a new macro-environment," revealed Governor Craig Benson, PLNT's interim Chief Executive Officer.
Benson said the changes include decreasing certain capital investments by extending the timing for replacing equipment and completing remodels in order to set the company and its franchisees up for "continued long-term sustainable growth."
Looking ahead, PLNT now expects 2023 revenue to increase by approximately 14% compared to 2022, up from the previously expected 12% increase. Adjusted earnings per share is forecast to rise around 35% compared to the previously guided 34% rise.