Arcade company Dave & Buster’s (NASDAQ: PLAY) will be announcing earnings results this Monday afternoon. Here’s what you need to know.
Dave & Buster's missed analysts’ revenue expectations last quarter, reporting revenues of $529.6 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is Dave & Buster's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dave & Buster’s revenue to grow 1.7% year on year, a reversal from the 3.5% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Dave & Buster’s peers in the consumer discretionary - leisure facilities segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Live Nation delivered year-on-year revenue growth of 12.1%, beating analysts’ expectations by 6.1%, and Sphere Entertainment reported revenues up 37.7%, topping estimates by 5%. Live Nation traded up 6.7% following the results while Sphere Entertainment was also up 5.5%.
Read our full analysis of Live Nation’s results here and Sphere Entertainment’s results here.
There has been positive sentiment among investors in the consumer discretionary - leisure facilities segment, with share prices up 10.5% on average over the last month. Dave & Buster's is up 28.3% during the same time and is heading into earnings with an average analyst price target of $18.88 (compared to the current share price of $12.99).
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