By What Happened:
Shares of inclusive gym franchise company (NYSE:PLNT) jumped 11.1% in the pre-market session after 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.
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What is the market telling us:
Planet Fitness’s shares are somewhat volatile and over the last year have had 5 moves greater than 5%. But moves this big are very rare even for Planet Fitness and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Planet Fitness is up 7% since the beginning of the year, and at $78.22 per share, has set a new 52-week high. Investors who bought $1,000 worth of Planet Fitness’s shares 5 years ago would now be looking at an investment worth $1,007.
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