Beauty and waxing service franchise European Wax Center (NASDAQ: EWCZ) will be reporting earnings this Wednesday before market hours. Here’s what to expect.
European Wax Center missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $55.91 million, down 6.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.
Is European Wax Center a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting European Wax Center’s revenue to decline 5.1% year on year to $52.6 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.10 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 four times over the last two years.
Looking at European Wax Center’s peers in the leisure facilities segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AMC Entertainment’s revenues decreased 3.6% year on year, beating analysts’ expectations by 6.3%, and Topgolf Callaway reported a revenue decline of 7.8%, topping estimates by 2.3%. AMC Entertainment traded up 3.2% following the results while Topgolf Callaway was also up 14.2%.
Read our full analysis of AMC Entertainment’s results here and Topgolf Callaway’s results here.
Investors in the leisure facilities segment have had steady hands going into earnings, with share prices flat over the last month. European Wax Center is up 7% during the same time and is heading into earnings with an average analyst price target of $6.59 (compared to the current share price of $3.66).
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