Upscale bowling alley chain Bowlero (NYSE:BOWL) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.
Bowlero beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $283.9 million, up 18.6% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates.
Is Bowlero a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bowlero’s revenue to grow 9.7% year on year to $249.5 million, a reversal from the 1.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 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. Bowlero has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Bowlero’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Life Time delivered year-on-year revenue growth of 18.5%, meeting analysts’ expectations, and Rush Street Interactive reported revenues up 36.6%, topping estimates by 11.9%. Life Time traded down 7.1% following the results while Rush Street Interactive’s stock price was unchanged.
Read our full analysis of Life Time’s results here and Rush Street Interactive’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Bowlero is down 11.8% during the same time and is heading into earnings with an average analyst price target of $17.45 (compared to the current share price of $10.34).
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