What Analyst Projections for Key Metrics Reveal About European Wax Center (EWCZ) Q3 Earnings

Zacks
11 Nov 2024

The upcoming report from European Wax Center, Inc. (EWCZ) is expected to reveal quarterly earnings of $0.06 per share, indicating a decline of 33.3% compared to the year-ago period. Analysts forecast revenues of $54.65 million, representing a decrease of 1.9% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

That said, let's delve into the average estimates of some European Wax Center metrics that Wall Street analysts commonly model and monitor.

It is projected by analysts that the 'Revenue- Marketing fees' will reach $7.32 million. The estimate suggests a change of -3% year over year.

Based on the collective assessment of analysts, 'Revenue- Royalty fees' should arrive at $13.27 million. The estimate indicates a year-over-year change of -0.5%.

The consensus estimate for 'Revenue- Product sales' stands at $31.25 million. The estimate indicates a change of -2% from the prior-year quarter.

Analysts' assessment points toward 'Same-store sales' reaching -1.3%. The estimate compares to the year-ago value of 3.4%.

The consensus among analysts is that 'Ending center count' will reach 1,066. Compared to the current estimate, the company reported 1,026 in the same quarter of the previous year.

The average prediction of analysts places 'New center openings' at 7. The estimate compares to the year-ago value of 23.

View all Key Company Metrics for European Wax Center here>>>

Shares of European Wax Center have experienced a change of +17% in the past month compared to the +4.4% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), EWCZ is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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