Entertainment venue operator Lucky Strike (NYSE: LUCK) will be reporting earnings this Thursday morning. Here’s what to look for.
Lucky Strike missed analysts’ revenue expectations by 5.5% last quarter, reporting revenues of $339.9 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Is Lucky Strike a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lucky Strike’s revenue to grow 3.4% year on year to $293.4 million, slowing from the 18.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 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. Lucky Strike has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Lucky Strike’s peers in the 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 35.6%, beating analysts’ expectations by 3.1%, and Live Nation reported revenues up 16.3%, topping estimates by 3.4%. AMC Entertainment traded up 4.6% following the results while Live Nation was also up 3%.
Read our full analysis of AMC Entertainment’s results here and Live Nation’s results here.
There has been positive sentiment among investors in the leisure facilities segment, with share prices up 6.1% on average over the last month. Lucky Strike is up 1.5% during the same time and is heading into earnings with an average analyst price target of $13.25 (compared to the current share price of $10.56).
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