Unquestionably, one of the biggest winners of the post-COVID era is gyms. Going from “illegal to be open” to “back to normal,” circumstances for gyms went from about as bad as possible to as good as new. Recently, Xponential Fitness (NYSE:XPOF) saw just how good it could get for gyms with an impressive earnings report. Investors responded just how you’d expect and sent the gym’s share price up 16% in Friday’s session.
Xponential posted $0.11 per share in earnings, beating the consensus estimate of $0.07. Revenue came in at $71.3 million, which beat estimates calling for $66.86 million. Better yet, Xponential now boasts over 600,000 members throughout the United States and looks to post between $285 million and $295 million in revenue for 2023.
Undoubtedly, the centerpiece of Xponential’s earnings report was its increase in full-year revenue, which cleared $245 million. This was up 58% against this time last year. Analysts were very much on board with what they saw; Baird’s Jeff Van Sinderen noted that there was “…room for multiple expansion and potential upward price target revisions…” With Xponential’s pace of expansion, such a line of reasoning made sense. Reports suggested that the company opened a new location every 17 hours throughout 2022. It plans to keep that pace up and then some in 2023, opening another 500 locations.
Analysts are unanimous about Xponential’s chances. With eight analysts all offering Buy recommendations, it’s considered a Strong Buy. Further, with an average price target of $32.50, Xponential stock comes with 10.92% upside potential as well.