Boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) will be reporting earnings tomorrow after market hours. Here’s what to expect.

Xponential Fitness missed analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $76.52 million, down 1.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.

Is Xponential Fitness a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Xponential Fitness’s revenue to decline 4.9% year on year to $76.46 million, a reversal from the 26.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 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. Xponential Fitness has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 6.1% on average.

Looking at Xponential Fitness’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bowlero delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 4.3%, and Life Time reported revenues up 18.5%, in line with consensus estimates. Bowlero traded up 11.9% following the results while Life Time was down 7.1%.

Read our full analysis of Bowlero’s results here and Life Time’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.3% on average over the last month. Xponential Fitness is down 5.8% during the same time and is heading into earnings with an average analyst price target of $19.22 (compared to the current share price of $11.76).

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