Health chain Planet Health Inc PLNT reported fourth quarter and full fiscal yr outcomes final week that confirmed the chain’s continued development within the exercise section put up COVID-19 pandemic shutdowns. The corporate sees its development coming on the expense of rivals and it’s not afraid to take pictures on the firms it competes with.

What Occurred: Planet Health has been the topic of a brief report that calls out its unlawful billing operations and the problem of canceling memberships.

Except for the quick report, the corporate has seen robust membership development and gross sales development.

The corporate reported fourth-quarter income of $281.3 million, a year-over-year improve of 53.2%. The entire got here in forward of a Road estimate of $272 million, in line with information from Benzinga Pro.

The corporate’s earnings per share of 53 cents within the fourth quarter beat a Road estimate of 47 cents for the quarter.

Planet Health reported same-store gross sales have been up 9.0% within the fourth quarter. The corporate ended the fourth quarter with 2,410 shops open.

For the total fiscal yr, Planet Health had income of $936.8 million, a 59.6% year-over-year improve.

Identical-store gross sales have been up 11.4% within the fiscal yr. The corporate opened 158 new shops within the fiscal yr. Planet Health ended 2022 with round 17 million members, including 1.8 million members for the reason that finish of 2021.

The outcomes from the corporate noticed a number of analysts increase their value targets on the inventory. 

Associated Hyperlink: Why This Planet Health Analyst Says Brief Sellers Allegations Of Unethical Enterprise Practices Lack Fundementals 

Beating the Competitors: In a November presentation, Planet Health took a shot on the exercise sector and its dominance with a slide.

“Health ideas and fads come and go,” the slide learn.

The slide featured brick and mortar manufacturers like F45 Coaching Holding FXLV, World Fitness center, Bally Whole Health, Powerhouse Fitness center, Crossfit, Gold’s Fitness center and Orangetheory.

The slide additionally featured at-home exercise manufacturers like Peloton Interactive PTON, NordicTrack, Gazelle, The Beachbody Firm BODY, P90X and Bowflex, a model owned by Nautilus Inc NLS.

A take a look at the inventory efficiency of Planet Health versus its peer firms exhibits that the concept health ideas and fads do not final might ring true.

Beachbody shares are down 67.8% within the final yr and commerce below $1, a far cry from the $10 share value as a part of its SPAC merger.

F45 went public at $16 per share in 2021 and has seen shares fall 85% within the final yr to round $2 per share. The corporate’s shares have traded between $0.78 and $15.66 over the past 52 weeks. F45 counts actor Mark Wahlberg as an investor, and the corporate has been the topic of buyout presents beneath its former IPO value.

Bowflex is owned by Nautilus, together with different health manufacturers like Schwinn Health and its namesake Nautilus model. The corporate has seen shares fall 65% over the past yr and greater than 85% within the final 5 years. The corporate has a market capitalization of round $50 million and has shares buying and selling at $1.69 in comparison with a 52-week vary of $1.23 to $5.10.

As soon as the darling of Wall Road and a COVID-19 play, Peloton Interactive has seen shares fall over 50% within the final yr. The corporate’s shares commerce at $12.69 in comparison with a 52-week buying and selling vary of $6.66 to $32.14. Peloton has a brand new CEO and is restructuring to attempt to turnaround the enterprise.

Planet Health shares are down 9.7% within the final yr, outperforming its friends. Shares of the health chain are up over 115% within the final 5 years, main the way in which within the sector.

“In the present day greater than 6 p.c of all Individuals over the age of 15 are Planet Health members. However we’re not stopping there,” Planet Health CEO Chris Rondeau stated on the corporate’s fourth quarter earnings report. “We consider that sooner or later we are able to double our membership given our historic capacity to take action and the rising penetration we’ve skilled with every successive era.”

Whereas Planet Health calling out rivals as fads could have taken some without warning, thus far the outcomes converse for themselves when it comes to inventory efficiency.

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