Bowlero (BOWL) Q2 Earnings Report Preview: What To Look For

Upscale bowling alley chain Bowlero (NYSE:BOWL) will be announcing earnings results tomorrow after market hours. Here’s what to look for.

Bowlero missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $337.7 million, up 7% year on year. It was a weak 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 14.3% year on year to $273.7 million, a reversal from the 10.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 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 leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Life Time delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 5.2%, and Sphere Entertainment reported revenues up 112%, in line with consensus estimates. Life Time traded up 7.5% following the results while Sphere Entertainment was also up 13.5%.

Read our full analysis of Life Time’s results here and Sphere Entertainment’s results here.

There has been positive sentiment among investors in the leisure facilities segment, with share prices up 4.5% on average over the last month. Bowlero is down 3.9% during the same time and is heading into earnings with an average analyst price target of $17.7 (compared to the current share price of $10.85).

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