Earnings Update: Lucky Strike Entertainment Corporation (NYSE:LUCK) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Lucky Strike Entertainment Corporation (NYSE:LUCK) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results were positive, with revenue coming in at US$292m, beating analyst expectations by 3.5%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Lucky Strike Entertainment's ten analysts is for revenues of US$1.29b in 2026. This would reflect a modest 4.2% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 73% to US$0.11. Before this latest report, the consensus had been expecting revenues of US$1.28b and US$0.06 per share in losses. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Lucky Strike Entertainment

As a result, there was no major change to the consensus price target of US$13.55, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Lucky Strike Entertainment, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$9.00 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Lucky Strike Entertainment'shistorical trends, as the 5.7% annualised revenue growth to the end of 2026 is roughly in line with the 7.1% annual growth over the past three years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 11% annually. So it's pretty clear that Lucky Strike Entertainment is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Lucky Strike Entertainment. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lucky Strike Entertainment's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$13.55, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lucky Strike Entertainment. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lucky Strike Entertainment going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Lucky Strike Entertainment (1 shouldn't be ignored!) that you need to be mindful of.

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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.