Growth and Expansion Plans
Shares of Xponential Fitness soared after the Pure Barre and Row House franchisor released its fourth-quarter results and announced a stock buyback program worth up to $100 million over the next two years. Despite being down approximately 45% from a year earlier, the stock price jumped by 41% to $14.18 during midday trading.
Strategic Buyback Initiative
During a conference call with analysts on Friday, Chief Financial Officer John Meloun outlined the company's intention to utilize excess operating cash to repurchase shares at favorable valuations without compromising its mergers and acquisitions capabilities. This initiative is seen as a proactive measure to enhance shareholder value.
Strong Financial Performance
Xponential Fitness reported fourth-quarter revenue of $90.2 million, exceeding analysts' expectations of $81.7 million by a significant margin. Although adjusted earnings of 8 cents per share fell short of the anticipated 18 cents per share, the company remains optimistic about its future growth prospects.
Forecasted Revenue Targets
With a target revenue range of $340 million to $350 million for the year 2024, Xponential Fitness is aligning its strategic goals with market analysts' projections. The company aims to leverage its diverse portfolio of brands to drive sustained growth and profitability in the coming years.
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