Recently, fitness franchise Xponential Fitness (NASDAQ:XPOF) did something that should have had investors interested: it released word about its full-year 2023 guidance. The news was good but nowhere near good enough for investors as they pulled out in rapid fashion, sending shares down over 13% in Wednesday afternoon’s trading.
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The news was good by any measure; Xponential noted that its full-year 2023 guidance turned out about right after all, and it would hit on the high end of the previously announced range. That was enough to send shares blasting upward, but those gains would be completely reversed, and Xponential would ultimately fall farther than it gained in the premarket.
Baffling by itself, but then, Xponential brought out its targets for the next three years. It looks for revenue of $405 million, full-system sales of $2.33 billion, and earnings before interest, taxes, depreciation and amortization of $190 million. It also expects to open 500 new studios annually over the next three years. Xponential also announced that it set up a new partnership arrangement with Gympass. Gympass is known as a corporate wellness platform, so offering access to gyms should help underscore that rating. It should also help Xponential get some more access to the corporate health market, which might help achieve—or even surpass—those earlier-stated goals.
Analysts, meanwhile, are a lot more optimistic. The combination of 11 Buy ratings and one Hold makes Xponential Fitness stock a Strong Buy. Further, Xponential Fitness stock comes with a hefty 76.58% upside potential thanks to its average price target of $34.91.