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Dave & Buster's (PLAY) Q4 Earnings: What's in the Offing?

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Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Mar 28, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 75%.

Q4 Estimates

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at 59 cents, suggesting an improvement from a loss of $1.19 reported in the year-ago quarter. The consensus mark for revenues stands at $367.5 million, calling for growth of 214.6% from the prior-year quarter’s levels.

Factors to Note

Dave & Buster's fiscal fourth-quarter performance is likely to have benefited from a new menu, optimized marketing, technology investments and expansion of entertainment options. The company’s focus on initiatives like new service model, tablets and contactless order-pay experience might get reflected in the to-be-reported quarter’s results. Apart from great food or beverages, its entertainment business has been driving growth.

Robust performance of food and beverage, and amusement and other is likely to have driven the company’s performance in the quarter under review. The Zacks Consensus Estimate for food and beverage revenues is likely to witness an improvement of 215.7% year over year to $127 million. Amusement and other revenues are likely to see a surge of 207.8% year over year to $237 million.

However, a rise in labor and commodity cost continues to hurt the company. The industry players expect to witness higher costs due to labor and supply chain shortages. The company has been witnessing labor challenges in some of the markets.

 

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 +5.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company sports a Zacks Rank #1. 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 from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these also have the right combination of elements to post an earnings beat in the quarter to be reported:

Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank #3.

Shares of Chipotle's have gained 7.7% in the past year. CMG’s earnings beat the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 11.2%, on average.

Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +2.32% and a Zacks Rank #3.

Shares of Dollar Tree have appreciated 39.7% in the past year. DLTR’s earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 11.8%.

The ONE Group Hospitality, Inc. (STKS - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank #3.

Shares of The ONE Group have gained 16.7% in the past year. STKS’ earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 34.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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