Why Planet Fitness Stock Is Plummeting Lower Today

Shares of budget-conscious fitness center Planet Fitness (NYSE: PLNT) are down 32% as of 11 a.m. ET after the company reported underwhelming first-quarter earnings. During Q1, Planet Fitness grew sales and adjusted earnings per share (EPS) by 22% and 25%, respectively, sailing past Wall Street's consensus. However, the company saw net new member adds decline 36% from last year's level, prompting management to slash its 2026 guidance. Originally projecting revenue and EPS to rise by 9% in 2026, the company now expects growth closer to 7% and 4%, respectively.Worse yet, the company decided to withdraw the three-year growth algorithm it released during its 2025 Investor Day, in which it stated that sales and adjusted EPS would grow by 10% to 15% and 15% to 20%, respectively, each year. Without this rosy guidance as a benchmark, the market assigned Planet Fitness shares a lower valuation. Furthermore, due to the slowdown in new member adds, management paused its planned Black Card price increase, as they believe raising its Classic Card's price from $10 to $15 last year may have spurred this year's slowdown. This pause leaves investors wondering exactly how much pricing power Plant Fitness may command.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool