We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bowlero (BOWL) Q4 Earnings & Revenues Miss Estimates, Stock Up
Read MoreHide Full Article
Bowlero Corp. (BOWL - Free Report) reported fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and the bottom line declined from the prior-year quarter's figure. The downside was mainly due to dismal traffic trends and the softening of the retail consumer environment.
Nevertheless, the company reported an improving trend during the quarter. Attributes of bundled offerings (at a discounted price) and growth in events, leagues and tournaments added to the positives.
The company intends to focus on acquiring Lucky Strike, a robust M&A pipeline, new build activity (in marquee markets) and accelerated center conversions to drive growth. Also, it emphasized innovative offerings to encourage ancillary spending and increase wallet share.
Following the results, shares of the company gained 4.9% during trading hours on Sep 11.
Earnings & Revenues Discussion
During the fourth quarter of fiscal 2023, the company reported a loss per share of 9 cents, missing the Zacks Consensus Estimate of earnings of 1 cent. In the prior-year quarter, the company reported an adjusted earnings per share (EPS) of 9 cents.
Quarterly net revenues of $239.4 million missed the consensus mark of $240 million. The top line declined 10.6% year over year.
Operating Highlights & Expenses
During the fiscal fourth quarter, the costs of revenues came in at $182.2 million, down 1.7% from the prior-year quarter’s level. Selling and administrative expenses declined 1.7% year over year to $35.1 million.
Gross profit during the quarter came in at $57.2 million compared with 82.5 million reported in the prior-year quarter.
Net income during the fiscal fourth quarter was $146.2 million compared with $6.9 million reported in the year-ago quarter.
Adjusted EBITDA during the quarter totaled $64.5 million, compared with $82.4 million reported in the prior-year quarter. Adjusted EBITDA margin came in at 26.9% compared with 30.8% reported in the prior-year quarter.
Balance Sheet
As of Jul 2, 2023, the company’s cash and cash equivalents amounted to $195.6 million compared with $132.2 million as of Jul 3, 2022.
During the quarter, its net long-term debt amounted to $1,138.7 million compared with $865.1 million reported in the prior-year quarter.
For the 12 months (ended Jul 2, 2023), net cash provided by operating activities amounted to $217.8 million compared with $ 177.7 million reported in the prior-year period.
Fiscal 2023 Highlights
Total revenues in fiscal 2023 amounted to $1,058.8 million compared with $911.7 million in fiscal 2022.
Net income in fiscal 2023, came in at $82 million against a loss of $29.9 million reported in the previous year.
Adjusted EBITDA in fiscal 2023 came in at $354.3 million compared with $316.4 million in fiscal 2022.
Fiscal 2024 Guidance
For fiscal 2024, the company expects revenues to be in the range of $1.14-$1.19 billion. Adjusted EBITDA is anticipated to be between $365 million and $405 million. The adjusted EBTIDA margin is likely to be between 32% and 34%.
Capital expenditures during fiscal 2024 are anticipated to include $40 million (for new builds) and $75 million (conversions). The company has also set aside more than $160 million for acquisition purposes.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. (LYV - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have declined 8.6% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21% and 57.8%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 39.1% on average. Shares of SKX have increased 34.8% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 8.7% and 42%, respectively, from the year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Bowlero (BOWL) Q4 Earnings & Revenues Miss Estimates, Stock Up
Bowlero Corp. (BOWL - Free Report) reported fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and the bottom line declined from the prior-year quarter's figure. The downside was mainly due to dismal traffic trends and the softening of the retail consumer environment.
Nevertheless, the company reported an improving trend during the quarter. Attributes of bundled offerings (at a discounted price) and growth in events, leagues and tournaments added to the positives.
The company intends to focus on acquiring Lucky Strike, a robust M&A pipeline, new build activity (in marquee markets) and accelerated center conversions to drive growth. Also, it emphasized innovative offerings to encourage ancillary spending and increase wallet share.
Following the results, shares of the company gained 4.9% during trading hours on Sep 11.
Earnings & Revenues Discussion
During the fourth quarter of fiscal 2023, the company reported a loss per share of 9 cents, missing the Zacks Consensus Estimate of earnings of 1 cent. In the prior-year quarter, the company reported an adjusted earnings per share (EPS) of 9 cents.
Bowlero Corp. Price, Consensus and EPS Surprise
Bowlero Corp. price-consensus-eps-surprise-chart | Bowlero Corp. Quote
Quarterly net revenues of $239.4 million missed the consensus mark of $240 million. The top line declined 10.6% year over year.
Operating Highlights & Expenses
During the fiscal fourth quarter, the costs of revenues came in at $182.2 million, down 1.7% from the prior-year quarter’s level. Selling and administrative expenses declined 1.7% year over year to $35.1 million.
Gross profit during the quarter came in at $57.2 million compared with 82.5 million reported in the prior-year quarter.
Net income during the fiscal fourth quarter was $146.2 million compared with $6.9 million reported in the year-ago quarter.
Adjusted EBITDA during the quarter totaled $64.5 million, compared with $82.4 million reported in the prior-year quarter. Adjusted EBITDA margin came in at 26.9% compared with 30.8% reported in the prior-year quarter.
Balance Sheet
As of Jul 2, 2023, the company’s cash and cash equivalents amounted to $195.6 million compared with $132.2 million as of Jul 3, 2022.
During the quarter, its net long-term debt amounted to $1,138.7 million compared with $865.1 million reported in the prior-year quarter.
For the 12 months (ended Jul 2, 2023), net cash provided by operating activities amounted to $217.8 million compared with $ 177.7 million reported in the prior-year period.
Fiscal 2023 Highlights
Total revenues in fiscal 2023 amounted to $1,058.8 million compared with $911.7 million in fiscal 2022.
Net income in fiscal 2023, came in at $82 million against a loss of $29.9 million reported in the previous year.
Adjusted EBITDA in fiscal 2023 came in at $354.3 million compared with $316.4 million in fiscal 2022.
Fiscal 2024 Guidance
For fiscal 2024, the company expects revenues to be in the range of $1.14-$1.19 billion. Adjusted EBITDA is anticipated to be between $365 million and $405 million. The adjusted EBTIDA margin is likely to be between 32% and 34%.
Capital expenditures during fiscal 2024 are anticipated to include $40 million (for new builds) and $75 million (conversions). The company has also set aside more than $160 million for acquisition purposes.
Zacks Rank & Key Picks
Bowlero has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.5% on average. Shares of RCL have gained 103.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. (LYV - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have declined 8.6% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21% and 57.8%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 39.1% on average. Shares of SKX have increased 34.8% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 8.7% and 42%, respectively, from the year-ago period’s levels.