Financial Performance - European Wax Center, Inc. reported revenue of $55.91 million for the quarter ended June 2025, reflecting a year-over-year decline of 6.6% [1] - The EPS for the same period was $0.27, an increase from $0.15 a year ago, indicating a positive trend in earnings [1] - The reported revenue fell short of the Zacks Consensus Estimate of $56.93 million, resulting in a surprise of -1.79% [1] - The company achieved an EPS surprise of +42.11%, with the consensus EPS estimate being $0.19 [1] Key Metrics - Same-store sales were reported at 0.3%, outperforming the estimated -0.4% by four analysts [4] - System-wide sales reached $257.6 million, slightly above the average estimate of $257.31 million based on three analysts [4] - The ending center count was 1,059, exceeding the estimated 1,054 by two analysts [4] - Revenue from marketing fees was $8.11 million, surpassing the estimated $7.79 million, but representing a -0.4% change year-over-year [4] - Revenue from royalty fees was $14.28 million, compared to the estimated $14.02 million, reflecting a -1.3% change year-over-year [4] - Product sales revenue was $30.52 million, below the average estimate of $31.29 million, indicating a -10.1% year-over-year change [4] - Other revenue was reported at $3.01 million, slightly below the estimated $3.22 million, with a year-over-year change of -9.9% [4] Stock Performance - Shares of European Wax Center have returned -14.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - European Wax Center, Inc. (EWCZ) has shown a significant price increase of 51.5% over the past four weeks, with a mean price target of $6.50 indicating a potential upside of 27.7% from the current trading price of $5.09 [1] Price Targets and Analyst Consensus - The average price targets for EWCZ range from a low of $4 to a high of $15, with a standard deviation of $3.51, indicating variability in analyst estimates [2] - The lowest estimate suggests a decline of 21.4%, while the most optimistic estimate indicates a potential upside of 194.7% [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Optimism - Analysts have shown strong agreement in revising EWCZ's earnings estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 127.1%, with four estimates moving higher and no negative revisions [12] - EWCZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as analysts' ability to set unbiased targets has been questioned [3][10] - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [8]

Core Insights - European Wax Center, Inc. (EWCZ) reported a revenue of $51.43 million for the quarter ended March 2025, reflecting a decrease of 0.9% year-over-year, while EPS increased to $0.22 from $0.13 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $49.4 million by 4.11%, and the EPS surpassed the consensus estimate of $0.05 by 340% [1] Financial Performance Metrics - Same-store sales increased by 0.7%, outperforming the average estimate of -0.6% from five analysts [4] - System-wide sales reached $225.90 million, exceeding the average estimate of $219.72 million from four analysts [4] - The ending center count was 1,062, slightly above the average estimate of 1,061 based on three analysts [4] - Revenue from marketing fees was $7.20 million, surpassing the average estimate of $6.78 million, representing a year-over-year increase of 1.5% [4] - Revenue from royalty fees was $12.43 million, slightly above the average estimate of $12.26 million, with a year-over-year change of -0.1% [4] - Revenue from product sales was $28.87 million, exceeding the average estimate of $27.69 million, reflecting a year-over-year decrease of 2.1% [4] - Other revenue amounted to $2.93 million, surpassing the average estimate of $2.78 million, with a year-over-year increase of 2.9% [4] Stock Performance - Shares of European Wax Center have returned +20% over the past month, compared to the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]