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Dave & Buster's (PLAY) Up 17.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have added about 17.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dave & Buster's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Dave & Buster's Q3 Earnings Top Estimates, Revenues Lag
Dave & Buster's reported mixed third-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 1 cent, against the Zacks Consensus Estimate of a loss of 22 cents. In the year-ago quarter, it reported an adjusted EPS of 10 cents.
Quarterly revenues of $466.9 million missed the consensus mark of $472 million. In the prior-year quarter, the company reported revenues of $481.2 million. A complex macroeconomic backdrop and difficult prior-year comparisons (on account of robust post-COVID demand) added to the negatives.
Food and Beverage revenues (35.3% of total revenues in the reported quarter) dropped 0.6% year over year to $164.9 million. Entertainment revenues (64.7%) declined 4.2% year over year to $302 million.
Comps Details
During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 7.8% year over year but increased 8.1% from 2019 levels.
Operating Highlights
During the quarter under discussion, operating income amounted to $18.6 million compared with $30.1 million reported in the prior-year quarter. The operating margin was 3.9% compared with 6.3% reported in the year-ago quarter. Our estimate for the metric was 2%.
Adjusted EBITDA came in at $81.6 million compared with $86.1 million reported in the year-earlier quarter.
Balance Sheet
As of Oct 29, 2023, cash and cash equivalents were $64 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal third quarter, the company repurchased nearly 2.8 million shares for an aggregate cost of $100 million. As of Oct 29, the company had $100 million available for the buyback program.
At the fiscal third-quarter end, net long-term debt totaled $1,281.3 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 10.18% due to these changes.
VGM Scores
At this time, Dave & Buster's has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dave & Buster's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dave & Buster's is part of the Zacks Retail - Restaurants industry. Over the past month, Jack In The Box (JACK - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended September 2023 more than a month ago.
Jack In The Box reported revenues of $372.52 million in the last reported quarter, representing a year-over-year change of -7.5%. EPS of $1.09 for the same period compares with $1.33 a year ago.
For the current quarter, Jack In The Box is expected to post earnings of $1.93 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Jack In The Box. Also, the stock has a VGM Score of C.
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Dave & Buster's (PLAY) Up 17.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have added about 17.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dave & Buster's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Dave & Buster's Q3 Earnings Top Estimates, Revenues Lag
Dave & Buster's reported mixed third-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 1 cent, against the Zacks Consensus Estimate of a loss of 22 cents. In the year-ago quarter, it reported an adjusted EPS of 10 cents.
Quarterly revenues of $466.9 million missed the consensus mark of $472 million. In the prior-year quarter, the company reported revenues of $481.2 million. A complex macroeconomic backdrop and difficult prior-year comparisons (on account of robust post-COVID demand) added to the negatives.
Food and Beverage revenues (35.3% of total revenues in the reported quarter) dropped 0.6% year over year to $164.9 million. Entertainment revenues (64.7%) declined 4.2% year over year to $302 million.
Comps Details
During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 7.8% year over year but increased 8.1% from 2019 levels.
Operating Highlights
During the quarter under discussion, operating income amounted to $18.6 million compared with $30.1 million reported in the prior-year quarter. The operating margin was 3.9% compared with 6.3% reported in the year-ago quarter. Our estimate for the metric was 2%.
Adjusted EBITDA came in at $81.6 million compared with $86.1 million reported in the year-earlier quarter.
Balance Sheet
As of Oct 29, 2023, cash and cash equivalents were $64 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal third quarter, the company repurchased nearly 2.8 million shares for an aggregate cost of $100 million. As of Oct 29, the company had $100 million available for the buyback program.
At the fiscal third-quarter end, net long-term debt totaled $1,281.3 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 10.18% due to these changes.
VGM Scores
At this time, Dave & Buster's has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dave & Buster's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dave & Buster's is part of the Zacks Retail - Restaurants industry. Over the past month, Jack In The Box (JACK - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended September 2023 more than a month ago.
Jack In The Box reported revenues of $372.52 million in the last reported quarter, representing a year-over-year change of -7.5%. EPS of $1.09 for the same period compares with $1.33 a year ago.
For the current quarter, Jack In The Box is expected to post earnings of $1.93 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Jack In The Box. Also, the stock has a VGM Score of C.