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) Q2 Earnings Miss Estimates, Revenues Surpass
Read MoreHide Full Article
Bowlero Corp. (BOWL - Free Report) reported second-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year, but the bottom line declined from the prior-year quarter's figure.
During the fiscal second quarter, the company reported benefits from the Lucky Strike acquisition and robust event business performance. It reported positive same-store revenue backed by adjustments in promotions and pricing dynamics. During the quarter, acquisitions and new builds contributed $41 million in revenue. Although the company reported weather headwinds in the first three weeks of January, it is cautiously optimistic about making up the softness in the rest of the third quarter and fourth quarter. The company anticipates to achieve double-digit revenue growth in fiscal 2024.
Following the announcements, the company’s shares moved up 15.8% during trading hours on Feb 5.
Earnings & Revenues Discussion
During the second quarter of fiscal 2023, the company reported a loss per share of 1 cent, missing the Zacks Consensus Estimate of earnings of 12 cents. In the prior-year quarter, the company reported an adjusted earnings per share (EPS) of 18 cents.
Quarterly net revenues of $305.7 million beat the consensus mark of $300 million. The top line increased 11.8% year over year.
Operating Highlights & Expenses
During the fiscal second quarter, the cost of revenues came in at $215.1 million, down 19.7% from the prior-year quarter’s level. Selling and administrative expenses increased 8.9% year over year to $37.5 million.
Gross profit during the quarter came in at $90.6 million compared with 93.7 million reported in the prior-year quarter.
Net income during the fiscal second quarter was $(63.5) million against $1.4 million reported in the year-ago quarter.
Adjusted EBITDA during the quarter totaled $103.1 million compared with $97 million reported in the prior-year quarter. Adjusted EBITDA margin came in at 33.7% compared with 35.5% reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2023, the company’s cash and cash equivalents amounted to $190 million compared with $195.6 million as of Jul 2, 2023.
During the quarter, net long-term debt amounted to $1.13 billion compared with $1.14 billion reported in the prior-year quarter.
For the six months (ended Dec 31, 2023), net cash provided by operating activities amounted to $71.2 million compared with $ 115.9 million reported in the prior-year period.
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 EBITDA margin is likely to be between 32% and 34%.
Capital expenditures during the fiscal 2024 are anticipated to include $40 million (for new builds) and $80 million (conversions). The company also set aside more than $190 million for acquisition purposes.
The Zacks Consensus Estimate for VIRC’s 2024 sales and EPS indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
H World Group Limited (HTHT - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 31.8% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-ago period’s levels.
Carnival Corporation & plc (CCL - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 33.2% in the past year.
The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates a rise of 13.8% from the year-ago levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Bowlero (BOWL) Q2 Earnings Miss Estimates, Revenues Surpass
Bowlero Corp. (BOWL - Free Report) reported second-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year, but the bottom line declined from the prior-year quarter's figure.
During the fiscal second quarter, the company reported benefits from the Lucky Strike acquisition and robust event business performance. It reported positive same-store revenue backed by adjustments in promotions and pricing dynamics. During the quarter, acquisitions and new builds contributed $41 million in revenue. Although the company reported weather headwinds in the first three weeks of January, it is cautiously optimistic about making up the softness in the rest of the third quarter and fourth quarter. The company anticipates to achieve double-digit revenue growth in fiscal 2024.
Following the announcements, the company’s shares moved up 15.8% during trading hours on Feb 5.
Earnings & Revenues Discussion
During the second quarter of fiscal 2023, the company reported a loss per share of 1 cent, missing the Zacks Consensus Estimate of earnings of 12 cents. In the prior-year quarter, the company reported an adjusted earnings per share (EPS) of 18 cents.
Bowlero Corp. Price, Consensus and EPS Surprise
Bowlero Corp. price-consensus-eps-surprise-chart | Bowlero Corp. Quote
Quarterly net revenues of $305.7 million beat the consensus mark of $300 million. The top line increased 11.8% year over year.
Operating Highlights & Expenses
During the fiscal second quarter, the cost of revenues came in at $215.1 million, down 19.7% from the prior-year quarter’s level. Selling and administrative expenses increased 8.9% year over year to $37.5 million.
Gross profit during the quarter came in at $90.6 million compared with 93.7 million reported in the prior-year quarter.
Net income during the fiscal second quarter was $(63.5) million against $1.4 million reported in the year-ago quarter.
Adjusted EBITDA during the quarter totaled $103.1 million compared with $97 million reported in the prior-year quarter. Adjusted EBITDA margin came in at 33.7% compared with 35.5% reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2023, the company’s cash and cash equivalents amounted to $190 million compared with $195.6 million as of Jul 2, 2023.
During the quarter, net long-term debt amounted to $1.13 billion compared with $1.14 billion reported in the prior-year quarter.
For the six months (ended Dec 31, 2023), net cash provided by operating activities amounted to $71.2 million compared with $ 115.9 million reported in the prior-year period.
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 EBITDA margin is likely to be between 32% and 34%.
Capital expenditures during the fiscal 2024 are anticipated to include $40 million (for new builds) and $80 million (conversions). The company also set aside more than $190 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:
Virco Mfg. Corporation (VIRC - Free Report) sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 146.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and EPS indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
H World Group Limited (HTHT - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 31.8% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-ago period’s levels.
Carnival Corporation & plc (CCL - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 33.2% in the past year.
The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates a rise of 13.8% from the year-ago levels.