What To Expect From European Wax Center’s (EWCZ) Q4 Earnings

Beauty and waxing service franchise European Wax Center (NASDAQ:EWCZ) will be reporting results tomorrow morning. Here's what investors should know.

Last quarter European Wax Center reported revenues of $55.72 million, up 1.2% year on year, missing analyst expectations by 5.5%. It was a weak quarter for the company, with full-year revenue guidance missing analysts expectations.

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

This quarter analysts are expecting European Wax Center's revenue to grow 1% year on year to $54.07 million, slowing down from the 18.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

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 three times over the last two years.

Looking at European Wax Center's peers in the leisure facilities segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Bowlero delivered top-line growth of 11.8% year on year, beating analyst estimates by 1.7% and Live Nation reported revenues up 36.1% year on year, exceeding estimates by 22.1%. Bowlero traded up 3.4% on the results, and Live Nation was up 4.3%.

Read our full analysis of Bowlero's results here and Live Nation's results here.

Investors in the leisure facilities segment have had steady hands going into the earnings, with the stocks up on average 0.7% over the last month. European Wax Center is down 8.6% during the same time, and is heading into the earnings with analyst price target of $18.3, compared to share price of $13.5.

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