Investing.com -- Shares in Planet Fitness surged more than 6% in after-hours trading after the New Hampshire-based gym posted stronger than expected earnings in its first quarter since going public.
During the company's second quarter of 2015, which ended in late-June, Planet Fitness earned revenues of $79 million, up significantly from sales during the same quarter of 2014 of $62.7 million. Analysts expected Planet Fitness to earn revenues of $77.1 million for the period on adjusted earnings per share of 0.12. Planet Fitness also narrowly beat per share earnings estimates by 0.01 during the 13-week quarter.
"Our recent results demonstrate the strength of our unique business model and we are confident that our focus on providing a high-quality fitness experience at an exceptional price point will continue to resonate with a broader consumer audience," Planet Fitness CEO Christopher Rondeau said in a statement. "With our strong group of well-capitalized and experienced franchisees, we believe we have a sound plan in place to expand our store footprint and drive significant growth and shareholder value over the long-term."
In addition, the company opened 38 new stores during the quarter to boost its overall total to 1,014. With the opening of the new gyms, Planet Fitness reported net income of $11.5 million above earnings of $8.8 million in the same period last year. System-wide store sales also rose by 7.3% over the quarter.
"We are very pleased with our second quarter performance, which was highlighted by solid sales growth, strong margins and the opening of our 1,000th store," Rondeau added. "Having been with Planet Fitness for over 20 years, it was incredibly rewarding to reach another major milestone with the recent completion of our initial public offering. I'm very excited to begin the next chapter in the company's history."
Shares in Planet Fitness soared 6.2% in after-hours trading to 19.50.