Boutique fitness studio franchisor Xponential Fitness (NYSE: XPOF) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.

Xponential Fitness beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $83.22 million, down 6.8% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

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 4.3% year on year to $76.09 million, a reversal from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xponential Fitness has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Xponential Fitness’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Live Nation’s revenues decreased 11% year on year, missing analysts’ expectations by 2.8%, and Hasbro reported revenues up 17.1%, topping estimates by 14.8%. Live Nation traded up 1.9% following the results while Hasbro was also up 15.9%.

Read our full analysis of Live Nation’s results here and Hasbro’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.7% on average over the last month. Xponential Fitness is up 14.8% during the same time and is heading into earnings with an average analyst price target of $14.30 (compared to the current share price of $8.21).

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