It's been a good week for Bowlero Corp. (NYSE:BOWL) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.1% to US$11.75. It was overall a positive result, with revenues beating expectations by 4.3% to hit US$260m. Bowlero also reported a statutory profit of US$0.13, which was a nice improvement from the loss that the analysts were predicting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Bowlero

Following the latest results, Bowlero's ten analysts are now forecasting revenues of US$1.25b in 2025. This would be a reasonable 5.2% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$1.24b and earnings per share (EPS) of US$0.21 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of US$17.35. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Bowlero analyst has a price target of US$29.00 per share, while the most pessimistic values it at US$12.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Bowlero's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Bowlero is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bowlero's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$17.35, with the latest estimates not enough to have an impact on their price targets.

At least one of Bowlero's ten analysts has provided estimates out to 2027, which can be seen for free on our platform here.

Even so, be aware that Bowlero is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.