What happened

Shares of Planet Fitness (PLNT -1.19%) climbed 16.1% in November, according to data from S&P Global Market Intelligence, after the gym chain announced strong third-quarter 2019 results.

To be sure, Planet Fitness stock popped more than 11% on Nov. 8, 2019, alone -- the first trading day after its quarterly update hit the wires.

Storefront of a Planet Fitness location.


So what

More specifically, Planet Fitness' quarterly revenue climbed 22.1% year over year to $166.8 million, translating to a 19.5% increase in adjusted net income to $33.1 million, or $0.36 per share. Most analysts were only modeling roughly the same earnings on lower revenue of $162 million.

Planet Fitness CEO Chris Rondeau called it "another quarter of very solid results," crediting the top-line growth to a 7.9% increase in same-store sales, accelerated new store openings, and franchisees' "continued commitment to reequip their existing clubs with new equipment."

Now what

Planet Fitness also raised its full-year outlook to call for revenue growth of 19% (up from 18% previously), assuming same-store sales of 8.6% (up from 8% before) and total new-store equipment sales at the high end of its old 250 to 260 range. Planet Fitness further increased its 2019 outlook to call for adjusted earnings to increase 28% to $1.56 per share, up from its prior target for 26% growth.

If that wasn't enough, later in the month, Planet Fitness announced plans to open at least 35 new locations in Australia. And just last week, the company revealed it had entered into an accelerated $300 million share repurchase agreement with JPMorgan -- effectively exhausting around 80% of the shares it previously expected to repurchase under a $500 million buyback announced a few weeks earlier.

All told, with shares still reeling from a largely unexplained pullback in September, it was hardly surprising to see Planet Fitness stock rebound in a big way last month. Assuming it can sustain the momentum of its underlying business in the coming quarters, I suspect Planet Fitness could still prove itself as a top portfolio candidate to whip almost any portfolio into shape.