Stock Story -
Beauty and waxing service franchise European Wax Center (NASDAQ:EWCZ) will be reporting results tomorrow morning. Here's what to expect.
European Wax Center beat analysts' revenue expectations by 4.2% last quarter, reporting revenues of $56.33 million, up 5.2% year on year. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations.
Is European Wax Center a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting European Wax Center's revenue to grow 4.3% year on year to $52.02 million, slowing from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. European Wax Center has missed Wall Street's revenue estimates three times over the last two years.
Looking at European Wax Center's peers in the leisure facilities segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Topgolf Callaway (NYSE:MODG)'s revenues decreased 2% year on year, missing analysts' expectations by 1.1%, and Live Nation reported revenues up 21.5%, topping estimates by 16.6%. Topgolf Callaway traded down 5.4% following the results while Live Nation was flat on the results.
Read the full analysis of Topgolf Callaway's and Live Nation's results on StockStory.
There has been positive sentiment among investors in the leisure facilities segment, with share prices up 6.7% on average over the last month. European Wax Center is down 2.6% during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $11.13).
