Shares of Xponential Fitness ( NYSE: XPOF ) marked a double-digit gain on Friday after posting better than expected Q4 results.
The California-based boutique fitness franchisor notched a narrow beat on the bottom line, reporting $0.11 in earnings per share for the quarter against a $0.10 consensus. Meanwhile, a 44.3% jump in revenue year over year to $71.3M came in $4.44M above estimates.
Additionally, the company guided for $285M to $295M in revenue for 2023, above the $287.46M consensus forecast. Management also noted that the group now courts over 600K members as of the close of January.
Analysts at Morgan Stanley, Raymond James, and Baird each applauded the results, reiterating Buy ratings.
“We expect the company to continue to acquire profitable businesses and increase shareholder value as it has done in the past. Therefore, all things considered, including an expected broader macroeconomic recovery over time, we believe that the potential exists for XPOF to exceed our estimates long term,” Baird analyst Jeff Van Sinderen told clients. “Finally, we believe there is room for multiple expansion and potential upward price target revisions as the company successfully executes its growth strategy.”
He set a $32 price target on the stock alongside his Buy rating, in-line with Raymond James’ target. Morgan Stanley’s analysts raised their price target to $30 from a prior $28.
Shares of Xponential Fitness ( XPOF ) rose 14.53% in afternoon trading on Friday to surpass Morgan Stanley’s prior price target.
Read the earnings call transcript .
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Xponential Fitness stock accelerates 15% higher on earnings beat