Shares of Planet Fitness Inc. (PLNT 1.98%) jumped 16.8% on Wednesday after the fitness-center chain announced strong third-quarter 2018 results.
Specifically, Planet Fitness' revenue soared 40.2% year over year to $136.7 million, which translates to 47.9% growth in adjusted net income of $27.7 million, or $0.28 per diluted share. Most investors would have settled for earnings of $0.24 per share on roughly the same revenue.
Planet Fitness' top-line growth was comprised of a 54.2% increase in franchise segment sales to $54.8 million -- including $11.4 million in national advertising fund revenue -- a 24% gain in corporate-owned store revenue to $35.4 million, and 39.1% growth in equipment segment sales to $46.4 million. Systemwide same-store sales also climbed 9.7%.
CEO Chris Rondeau said: "I am very pleased with our third-quarter performance, as revenue in each of our three operating segments once again increased double digits year over year. The combination of our high value, low cost, non-intimidating fitness concept and differentiated business model continues to drive solid top- and bottom-line improvement."
What's more, Planet Fitness increased its full-year 2018 guidance to call for total revenue growth of 33% (up from 26% growth previously), systemwide comps growth of 10% (near the high end of its prior 9% to 10% range), and a 43% increase in adjusted net income per share (up from 33% before).
In the end, given this solid beat and raise, it's no surprise to see the market pumping up Planet Fitness shares to a fresh all-time high today.