Market Movers: Life Time and Planet Fitness Soar on Strong Earnings
The stock market opened on a mixed note, with Lam Research and ASML Holdings leading the Nasdaq higher. However, the real excitement was in the fitness sector, where Life Time Group and Planet Fitness were making waves.
Life Time Breaks Out on Strong Q4 Results
Life Time Group, a health and wellness club operator, reported preliminary Q4 results that exceeded expectations. The company forecasted adjusted earnings between 24 cents and 25 cents, surpassing FactSet’s estimate of 14 cents per share. Additionally, Life Time predicted total revenue to increase 18.5% to $661 million to $663 million, topping analyst views of $644 million.
A Rosy Outlook for 2025
Life Time also introduced a 2025 outlook that was ahead of Wall Street estimates. The company guided expectations to a 12.2% revenue increase, ranging from $2.91 billion to $2.97 billion, compared to expectations of $2.6 billion. Furthermore, Life Time predicted a 75.8% increase in net revenue, to between $262 million to $269 million, surpassing the consensus of $207 million.
Stock Soars on Strong Guidance
As a result, LTH stock rallied more than 9% to 27.39 premarket Thursday, on track to clear a 25.59 buy point for a 13-week double-bottom base and mark a record high. Life Time is also on track for 11 consecutive daily gains and is up more than 13% this year through Wednesday.
Planet Fitness Also on the Rise
Meanwhile, rival health club operator Planet Fitness was also making headlines. The company broke out on Tuesday, clearing an early entry opportunity for a flat base at 102.90. IBD’s SwingTrader added PLNT stock as a full position with a 104.88 entry, before trimming the position to 3/4 on Wednesday. Planet Fitness is near the top of the SwingTrader buy zone, which ranges from 104.70 to 106.79.
A Record High for Planet Fitness
Planet Fitness is up 8% in 2025 and on Wednesday hit a record high of 107.68. With both Life Time and Planet Fitness on the rise, it’s clear that the fitness sector is heating up. Stay tuned for more updates on these stocks and others in the industry.
Leave a Reply