Town Sports International - Aggressive Growth
August 02 2011 - 8:00PM
Zacks
Town Sports International (CLUB) recently flexed its
financial muscle with yet another earnings surprise. Estimates
quickly began moving higher, leading to triple-digit growth rates.
Shares are currently a Zacks #1 Rank (Strong Buy) and, while not
a great value, have excellent short-term potential.
Company Description
Town Sports International is an owner/operator of fitness clubs
in the Northeast and Mid-Atlantic regions. They are the 5th largest
club operator in the U.S and also have 3 locations in
Switzerland.
Fantastic Quarter
On Jul 27 Town Sports blew away expectations with its second
quarter results. Earnings per share came in at $0.16, a nickel
better than expected, and giving them 9 surprises in the past 11
quarters. The other 2 periods they met expectations.
Revenue was up less than 1% to $118 million. Not exactly
impressive on the surface, but the company said it was the best
quarter in years and they are ahead of their growth plan. Comp
sales turn positive sooner than expected and management raised
their outlook for the remainder of the year.
Estimates Beefing Up
Full-year forecasts for 2011 rose a dime on average, to $0.38.
Next year's estimates are up 15 cents, to $0.60. In 2010 Town
Sports earned just 10 cents, so the growth rates are an impressive
285% and 55%, respectively.
The Chart
Just how much did the market like the earnings results? Take a
look below. Not only did they surge on the news, but keep in mind
that it was during a very bearish week across the global
markets.
This is not going to lure in any value investors, but the growth
story could keep the momentum going enough to push through $10 a
share.
Town Sports (NASDAQ:CLUB)
Historical Stock Chart
From May 2024 to Jun 2024
Town Sports (NASDAQ:CLUB)
Historical Stock Chart
From Jun 2023 to Jun 2024