What happened

Shares of exercise company Planet Fitness (PLNT 1.82%) got a lift on Tuesday after the company reported financial results for the third quarter of 2022 that beat analysts' expectations. And management raised its profit outlook for the rest of the year, which excited investors even more. As of 10:20 a.m. ET, Planet Fitness stock was up 11%. 

So what

There were a lot of good takeaways from Planet Fitness' Q3 results. Highlights include record high membership of 16.6 million people (up about 100,000 since last quarter), year-over-year (YOY) same-store-sales growth of 8.2%, and the opening of 29 new locations during the quarter.

For Q3, Planet Fitness generated revenue of $244 million, which was up 58% from the same quarter of last year. And net income of $30.7 million was up 65%. Importantly, the company surpassed analysts' expectations on both the top and bottom lines.

Now what

Planet Fitness' management raised its guidance for the rest of 2022 in light of Q3 results. It had guided for revenue growth in the medium-50% range but now expects it to be in the high-50% range. Moreover, it previously believed adjusted net income would increase around 90% YOY but now it believes it will be closer to a clean double.

Also notably, Planet Fitness authorized a new share repurchase program of $500 million, or about 8% of shares outstanding at current prices. That's a nice buyback program and likely added to investor enthusiasm today.

Finally, Planet Fitness will have an investor day presentation on Nov. 15. While Q3 results were strong and show a nice ongoing recovery in the business after the COVID-19 lockdowns, it will be interesting to hear what specific financial targets management has in mind for the next several years. What management says next week could go a long way in determining whether Planet Fitness has enough fundamental drivers to keep beating the market over the long haul.