Boutique fitness studio franchisor Xponential Fitness (NYSE: XPOF) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Xponential Fitness beat analysts’ revenue expectations last quarter, reporting revenues of $82.96 million, flat year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
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 16.7% year on year, a further deceleration from the 3.5% decrease it recorded in the same quarter last year.
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. 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 Q1 results, giving us a hint as to what we can expect. Live Nation delivered year-on-year revenue growth of 12.1%, beating analysts’ expectations by 6.1%, and Sphere Entertainment reported revenues up 37.7%, topping estimates by 5.1%.
Read our full analysis of Live Nation’s results here and Sphere Entertainment’s results here.
There has been positive sentiment among investors in the consumer discretionary - leisure facilities segment, with share prices up 6% on average over the last month. Xponential Fitness is down 2.6% during the same time and is heading into earnings with an average analyst price target of $7.69 (compared to the current share price of $6.58).
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