Boutique fitness studio franchisor Xponential Fitness (NYSE: XPOF) will be reporting earnings this Thursday after the bell. Here’s what to expect.
Xponential Fitness missed analysts’ revenue expectations last quarter, reporting revenues of $60.71 million, down 21% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Is Xponential Fitness a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Xponential Fitness’s revenue to decline 15.5% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Xponential Fitness has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Xponential Fitness’s peers in the consumer discretionary - leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Sphere Entertainment reported revenues up 11%, topping estimates by 1.8%. AMC Entertainment traded up 13.4% following the results while Sphere Entertainment was also up 2.2%.
Read our full analysis of AMC Entertainment’s results here and Sphere Entertainment’s results here.
Investors in the consumer discretionary - leisure facilities segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Xponential Fitness is down 2% during the same time and is heading into earnings with an average analyst price target of $7.42 (compared to the current share price of $6.68).
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