Earnings To Watch: Bowlero (BOWL) Reports Q2 Results

Adam Hejl /
2024/02/04 2:01 am EST

Upscale bowling alley chain Bowlero (NYSE:BOWL) will be reporting results today before market open. Here's what to expect.

Last quarter Bowlero reported revenues of $227.4 million, down 1.2% year on year, missing analyst expectations by 0.6%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Bowlero buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Bowlero's revenue to grow 9.9% year on year to $300.6 million, slowing down from the 33.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

Bowlero Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Bowlero's peers in the leisure facilities and products segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Peloton's revenues decreased 6.2% year on year, beating analyst estimates by 1.3% and Malibu Boats reported revenue decline of 37.7% year on year, missing analyst estimates by 4.1%. Peloton traded up 2.5% on the results, and Malibu Boats was down 1.5%.

Read our full analysis of Peloton's results here and Malibu Boats's results here.

Valuation multiples for stocks have reverted to their historical means after reaching highs in early 2021, and while some of the leisure facilities and products stocks have fared somewhat better, they have not been spared, with share price declining 6.7% over the last month. Bowlero is down 15% during the same time, and is heading into the earnings with analyst price target of $18.3, compared to share price of $11.6.

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The author has no position in any of the stocks mentioned.