Earnings To Watch: Xponential Fitness (XPOF) Reports Q2 Results Tomorrow

Boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) will be announcing earnings results tomorrow afternoon. Here’s what to expect.

Xponential Fitness met analysts’ revenue expectations last quarter, reporting revenues of $79.52 million, up 12.5% year on year. It was a decent quarter for the company: Xponential Fitness narrowly beat analysts’ revenue and adjusted EBITDA expectations.

Is Xponential Fitness a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Xponential Fitness’s revenue to grow 8.1% year on year to $83.64 million, slowing from the 29.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 9.6% on average.

Looking at Xponential Fitness’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Live Nation delivered year-on-year revenue growth of 7%, meeting analysts’ expectations, and Royal Caribbean reported revenues up 16.7%, topping estimates by 1.6%. Royal Caribbean traded down 6.7% following the results.

Read our full analysis of Live Nation’s results here and Royal Caribbean’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.8% on average over the last month. Xponential Fitness is up 5.2% during the same time and is heading into earnings with an average analyst price target of $23.4 (compared to the current share price of $16.89).

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