03:02 PM EDT, 08/06/2024 (MT Newswires) -- Shares of Planet Fitness ( PLNT ) soared in Tuesday afternoon trade after the gym chain reiterated its full-year outlook after reporting stronger-than-expected increases in second-quarter results.

The company continues to expect 2024 revenue growth of 4% to 6% over 2023's revenue of $1.07 billion. Analysts are modeling revenue of $1.13 billion for the ongoing year, according to a Capital IQ survey. Shares of Planet Fitness ( PLNT ) were up 8.7% in afternoon trade.

The fitness center operator maintained its full-year guidance for system-wide same store sales growth of 3% to 5% and its estimate for adjusted income per share to increase in the 7% to 9% range over 2023's adjusted EPS of $2.24. The Capital IQ-polled consensus is for normalized EPS of $2.43 this year.

"We have made changes over the past year to our underlying business to reduce the cost of owning and operating a Planet Fitness ( PLNT ) location as well as our recent classic card price increase, both of which enhanced what were already very attractive store-level returns," Chief Financial Officer Thomas Fitzgerald told analysts on a conference call, according to a Capital IQ transcript.

For the second quarter, revenue rose to $300.9 million from $286.5 million a year ago and was ahead of the $290.7 million average analyst estimate on Capital IQ. Adjusted earnings per share advanced to $0.71 for the three months ended June 30 from $0.65 last year and beat the $0.66 market view.

Franchise segment revenue grew by 9.1% to $107.8 million on a 4.3% increase in same store sales. Revenue from corporate-owned stores was up about 10% to $125.5 million, while that from equipment decreased 8.4%. Systemwide same store sales increased 4.2%. The classic card price increase to $15 went into effect on June 28 and did not have an effect on second-quarter same store sales, according to Fitzgerald.

"We expect that after one year of the price being in effect, existing stores will see a low- to mid-single-digit percentage increase to (average unit volumes), with an even greater impact to new stores as the majority of their classic card members will be paying $15," Chief Executive Colleen Keating said on the call. The company is also testing a pricing increase to its Black Card that would also "further enhance store returns," she told analysts.

Planet Fitness ( PLNT ) is in the "early innings" of growing its international store base after opening its first European club in Spain last month, Keating said.

Price: 78.08, Change: +6.07, Percent Change: +8.43