Shares of Planet Fitness Inc. (NYSE: PLNT) soared as much as 15.86% on Wednesday, November 7th, as the gym chain operator's strong third-quarter earnings and upbeat full-year outlook fueled investor optimism about its growth prospects.

For the three months ended September 30, 2024, Planet Fitness reported revenue of $292.2 million, surpassing Wall Street's estimate of $285.3 million. The company's adjusted earnings per share (EPS) of $0.64 also beat analysts' expectations of $0.58, representing a 9.3% beat.

Notably, Planet Fitness's EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $123.1 million, exceeding the consensus estimate of $117 million by 5.2%. The company's operating margins expanded by 1.7 percentage points year-over-year to 27.8%, reflecting its robust cost management and operating leverage.

Fueled by the strong quarterly performance, Planet Fitness raised its full-year 2024 revenue growth guidance to a range of 8% to 9%, up from its previous expectation of 4% to 6% growth. The company also announced a new $500 million share repurchase program, following the completion of a $280 million buyback, underscoring its commitment to enhancing shareholder value.

Analysts and investors cheered Planet Fitness's better-than-expected results and optimistic outlook, driving the stock to a new 52-week high. The company's success can be attributed to its continued expansion through new gym openings and its ability to drive strong same-store sales growth, which rose 4.3% year-over-year in Q3.