Beauty and waxing service franchise European Wax Center (NASDAQ: EWCZ) will be reporting results tomorrow before market hours. Here’s what to expect.
European Wax Center missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $49.74 million, down 11.7% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations.
Is European Wax Center a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting European Wax Center’s revenue to decline 4.4% year on year to $49.61 million, a reversal from the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally 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 five 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. Live Nation’s revenues decreased 11% year on year, missing analysts’ expectations by 2.8%, and Planet Fitness reported revenues up 11.5%, falling short of estimates by 1.2%. Live Nation traded up 1.9% following the results while Planet Fitness was down 8.8%.
Read our full analysis of Live Nation’s results here and Planet Fitness’s results here.
There has been positive sentiment among investors in the leisure facilities segment, with share prices up 14.5% on average over the last month. European Wax Center is up 17% during the same time and is heading into earnings with an average analyst price target of $6.19 (compared to the current share price of $3.92).
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