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What's in Store for Dave & Buster's (PLAY) in Q1 Earnings?
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Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report first-quarter fiscal 2024 results on Jun 12, 2024, after market close. In the last reported quarter, the company posted a negative earnings surprise of 3.7%.
Q1 Expectations
The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is pegged at $1.55, indicating growth of 6.9% from $1.45 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $614 million. The metric suggests growth of 2.8% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal first-quarter performance is likely to have benefitted from store expansions, new games pricing strategy and enhanced Food and Beverage (F&B) offerings. This and the focus on the digital marketing shift are likely to have paved a path for increased conversion and guest frequency in the to-be-reported quarter. Our model predicts fiscal first-quarter F&B revenues to rise 1.7% year over year to $207.6 million.
Phases of Dave & Buster's ‘menu of the future,’ along with a refined service model and remodeled stores featuring social bases and VIP watch areas, are expected to enhance Special Event revenue in the fiscal first quarter. Our model predicts Entertainment revenues to rise 2.6% year over year to $403.3 million.
The emphasis on personalized offers and targeted promotions is likely to have driven increased sales penetration among loyalty members.
Dave & Buster's strategic initiatives, including an enterprise gaming ecosystem, updated IT infrastructure and improved data analytics, are anticipated to have driven shareholders’ value and sustainable profitable growth. These technological advancements form a cohesive digital guest platform, enhancing the overall guest experience.
The company’s fiscal first-quarter operations are likely to have navigated through volatility arising from calendar shifts, particularly around the timing of spring breaks. This might have introduced some fluctuations in guest visits and overall sales patterns during the quarter.
Increased operating expenses are likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 7% year over year to $509.4 million in the fiscal first quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Dave & Buster’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Dave & Buster’s has an Earnings ESP of +12.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +6.75% and a Zacks Rank #2.
The company's shares have gained 103% in the past year. EAT’s earnings beat estimates in all of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
The company’s shares have increased 35.3% in the past year. SHAK’s earnings beat estimates in all of the trailing four quarters, the average surprise being 73%.
Chuy's Holdings, Inc. (CHUY - Free Report) currently has an Earnings ESP of +0.87% and a Zacks Rank of 3.
Shares of CHUY have declined 36.7% in the past year. CHUY’s earnings beat estimates in all of the trailing four quarters, the average surprise being 18.1%.
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What's in Store for Dave & Buster's (PLAY) in Q1 Earnings?
Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report first-quarter fiscal 2024 results on Jun 12, 2024, after market close. In the last reported quarter, the company posted a negative earnings surprise of 3.7%.
Q1 Expectations
The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is pegged at $1.55, indicating growth of 6.9% from $1.45 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $614 million. The metric suggests growth of 2.8% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Dave & Buster's Entertainment, Inc. price-eps-surprise | Dave & Buster's Entertainment, Inc. Quote
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal first-quarter performance is likely to have benefitted from store expansions, new games pricing strategy and enhanced Food and Beverage (F&B) offerings. This and the focus on the digital marketing shift are likely to have paved a path for increased conversion and guest frequency in the to-be-reported quarter. Our model predicts fiscal first-quarter F&B revenues to rise 1.7% year over year to $207.6 million.
Phases of Dave & Buster's ‘menu of the future,’ along with a refined service model and remodeled stores featuring social bases and VIP watch areas, are expected to enhance Special Event revenue in the fiscal first quarter. Our model predicts Entertainment revenues to rise 2.6% year over year to $403.3 million.
The emphasis on personalized offers and targeted promotions is likely to have driven increased sales penetration among loyalty members.
Dave & Buster's strategic initiatives, including an enterprise gaming ecosystem, updated IT infrastructure and improved data analytics, are anticipated to have driven shareholders’ value and sustainable profitable growth. These technological advancements form a cohesive digital guest platform, enhancing the overall guest experience.
The company’s fiscal first-quarter operations are likely to have navigated through volatility arising from calendar shifts, particularly around the timing of spring breaks. This might have introduced some fluctuations in guest visits and overall sales patterns during the quarter.
Increased operating expenses are likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 7% year over year to $509.4 million in the fiscal first quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Dave & Buster’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Dave & Buster’s has an Earnings ESP of +12.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +6.75% and a Zacks Rank #2.
The company's shares have gained 103% in the past year. EAT’s earnings beat estimates in all of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
The company’s shares have increased 35.3% in the past year. SHAK’s earnings beat estimates in all of the trailing four quarters, the average surprise being 73%.
Chuy's Holdings, Inc. (CHUY - Free Report) currently has an Earnings ESP of +0.87% and a Zacks Rank of 3.
Shares of CHUY have declined 36.7% in the past year. CHUY’s earnings beat estimates in all of the trailing four quarters, the average surprise being 18.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.