Beauty and waxing service franchise European Wax Center (NASDAQ:EWCZ) will be announcing earnings results tomorrow before market hours. Here's what investors should know.
European Wax Center met analysts' revenue expectations last quarter, reporting revenues of $51.87 million, up 4% year on year. It was a weaker quarter for the company, with and 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 grow 3.8% year on year to $61.34 million, slowing from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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. Life Time delivered year-on-year revenue growth of 18.9%, beating analysts' expectations by 5.2%, and United Parks & Resorts reported flat revenue, in line with consensus estimates. Life Time traded up 7.5% following the results while United Parks & Resorts's stock price was unchanged.
Read our full analysis of Life Time's results here and United Parks & Resorts's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the leisure facilities stocks have fared somewhat better, they have not been spared, with share prices down 6.4% on average over the last month. European Wax Center is down 27.3% during the same time and is heading into earnings with an average analyst price target of $15.8 (compared to the current share price of $6.99).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.