European Wax Center Earnings: What To Look For From EWCZ

Beauty and waxing service franchise European Wax Center (NASDAQ:EWCZ) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.

European Wax Center missed analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $59.87 million, up 1.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ earnings 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.

This quarter, analysts are expecting European Wax Center’s revenue to decline 2.8% year on year to $54.16 million, a reversal from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 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 Q3 results, giving us a hint as to what we can expect. Bowlero delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 4.3%, and Planet Fitness reported revenues up 5.3%, topping estimates by 2.5%. Bowlero traded up 11.9% following the results while Planet Fitness was also up 12.7%.

Read our full analysis of Bowlero’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 5.9% on average over the last month. European Wax Center is up 24.3% during the same time and is heading into earnings with an average analyst price target of $8.69 (compared to the current share price of $8.28).

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