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PLAY reported a Q4 loss of 35 cents per share, missing estimates and down from 66 cents EPS a year ago
Profit collapse just went from bad to worse as this year flips to a 167% annual EPS loss
Entertainment sales dropped 6.6% on weaker gaming demand, higher costs and weather pressured menu margins
Dave & Buster's ((PLAY - Free Report) ) has been consistently in the cellar of the Zacks Rank for years now.
I recall writing about it in 2024 when the stock was in the $60s and $50s. And I gave an update on April 17 when shares had just rallied back to $15 after another weak quarterly earnings report.
Many Quarters Later, the Decline Persists
On March 31, PLAY delivered their Q4 FY'26 report with these highlights...
>>PLAY reported a Q4 loss of 35 cents per share, missing estimates and down from 66 cents EPS a year ago. >>Revenues fell 0.9% to $529.6M as entertainment sales dropped 6.6% on weaker gaming demand. >>Comparable sales declined 3.3%, while higher costs and weather disruptions pressured margins.
Subsequent to these data points and management commentary, analysts slashed their full year FY'27 estimates (began February), driving the Zacks EPS Consensus from a PROFIT of 47-cents to a LOSS of 80-cents -- representing an annual decline of 167%.
Next year's forecasts were also flipped from profit to loss in early April.
But in the past month, it gets worse. This year dropped another 6-cents to -$0.86 -- for an annual loss of 187% -- and next year is dumped 13% to -$0.96.
My thesis is this: the earnings decline continues as new QSR, health-focused, and entertainment options multiply in a vibrant economy.
Bottom line: PLAY might be a fun place to take the family or watch a ball game with friends, but there's no joy for your money here. The Zacks Rank will let you know when it's time to play the stock again.
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Bear of the Day: Dave & Buster's (PLAY)
Key Takeaways
Dave & Buster's ((PLAY - Free Report) ) has been consistently in the cellar of the Zacks Rank for years now.
I recall writing about it in 2024 when the stock was in the $60s and $50s. And I gave an update on April 17 when shares had just rallied back to $15 after another weak quarterly earnings report.
Many Quarters Later, the Decline Persists
On March 31, PLAY delivered their Q4 FY'26 report with these highlights...
>>PLAY reported a Q4 loss of 35 cents per share, missing estimates and down from 66 cents EPS a year ago.
>>Revenues fell 0.9% to $529.6M as entertainment sales dropped 6.6% on weaker gaming demand.
>>Comparable sales declined 3.3%, while higher costs and weather disruptions pressured margins.
You can read more in this report: Dave & Buster's Q4 Earnings & Revenues Miss Estimates, Down Y/Y
Subsequent to these data points and management commentary, analysts slashed their full year FY'27 estimates (began February), driving the Zacks EPS Consensus from a PROFIT of 47-cents to a LOSS of 80-cents -- representing an annual decline of 167%.
Next year's forecasts were also flipped from profit to loss in early April.
But in the past month, it gets worse. This year dropped another 6-cents to -$0.86 -- for an annual loss of 187% -- and next year is dumped 13% to -$0.96.
My thesis is this: the earnings decline continues as new QSR, health-focused, and entertainment options multiply in a vibrant economy.
Bottom line: PLAY might be a fun place to take the family or watch a ball game with friends, but there's no joy for your money here. The Zacks Rank will let you know when it's time to play the stock again.