Beauty and waxing service franchise European Wax Center (NASDAQ:EWCZ) will be reporting results this Wednesday before the bell. Here’s what you need to know.
European Wax Center beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $51.43 million, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
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 5% year on year to $56.89 million, a reversal from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 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 four times over the last two years.
Looking at European Wax Center’s peers in the leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 3.1%, and Live Nation reported revenues up 16.3%, topping estimates by 3.4%. Live Nation traded up 3% following the results.
Read our full analysis of AMC Entertainment’s results here and Live Nation’s results here.
Investors in the leisure facilities segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. European Wax Center is down 19.2% during the same time and is heading into earnings with an average analyst price target of $6.71 (compared to the current share price of $4.22).
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