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The Zacks Retail and Wholesale Sector has tumbled in 2022, down more than 20% and widely underperforming the general market.
Image Source: Zacks Investment Research
A widely-recognizable stock in the sector, Dave & Buster’s Entertainment (PLAY - Free Report) , is scheduled to unveil Q2 earnings on September 7th after the market close.
Dave & Buster’s Entertainment is a leading owner and operator of high-volume venues in North America that combine dining and entertainment for both adults and families.
Currently, the entertainment titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A. How does everything shape up heading into the print? Let’s find out.
Share Performance & Valuation
Year-to-date, Dave & Buster’s shares have been notably strong, providing investors with a stellar 8% return and extensively outperforming the general market.
Image Source: Zacks Investment Research
Over the last month, PLAY shares have continued on their market-beating trajectory, increasing by nearly 6% in value and crushing the S&P 500 in this timeframe as well.
Image Source: Zacks Investment Research
The strong price action of Dave & Buster’s shares tells us that buyers have been defending the stock all year long, undoubtedly a positive amid all of the red YTD returns in 2022.
In addition to favorable price action, PLAY shares carry rock-solid valuation levels, further displayed by its Style Score of an A for Value.
The company’s 1.1X forward P/S ratio is nicely below its five-year median of 1.4X and represents a steep 18% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook over the last several months, with three downwards revisions hitting the tape. The Zacks Consensus EPS Estimate of $1.01 pencils in a 5.6% Y/Y decrease in quarterly earnings.
Image Source: Zacks Investment Research
However, the company’s top-line is in much better shape, most likely a reflection of soaring costs weighing heavily on margins. The Zacks Consensus Sales Estimate of $432 million reflects year-over-year revenue growth of a substantial 15%.
Quarterly Performance & Market Reactions
Dave & Buster’s has consistently surpassed bottom-line estimates, exceeding the Zacks Consensus EPS Estimate in eight of its previous ten quarters. Just in its latest print, PLAY registered a remarkable 17% bottom-line beat.
Top-line results have also been consistently reported above expectations as of late, with Dave & Buster’s penciling in five revenue beats over its last six quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market has had stellar reactions in response to the company’s quarterly prints recently, with shares moving upwards by double-digit percentages following each of PLAY’s last three earnings releases.
Putting Everything Together
Dave and Buster’s shares have been notably hot year-to-date and over the last month, signaling that buyers have been out in full force.
The company carries solid valuation levels, with its forward P/S ratio nicely beneath its five-year median and Zacks Sector.
Analysts have been bearish in their earnings outlook, with estimates reflecting a decline in earnings but an uptick in revenue – a reflection of margin compression.
Further, PLAY has consistently exceeded quarterly estimates, and the market has reacted strongly following each of its last three prints.
Heading into the release, Dave & Buster’s (PLAY - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 3%.
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Dave & Buster's Q2 Preview: Time to Party?
The Zacks Retail and Wholesale Sector has tumbled in 2022, down more than 20% and widely underperforming the general market.
Image Source: Zacks Investment Research
A widely-recognizable stock in the sector, Dave & Buster’s Entertainment (PLAY - Free Report) , is scheduled to unveil Q2 earnings on September 7th after the market close.
Dave & Buster’s Entertainment is a leading owner and operator of high-volume venues in North America that combine dining and entertainment for both adults and families.
Currently, the entertainment titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A. How does everything shape up heading into the print? Let’s find out.
Share Performance & Valuation
Year-to-date, Dave & Buster’s shares have been notably strong, providing investors with a stellar 8% return and extensively outperforming the general market.
Image Source: Zacks Investment Research
Over the last month, PLAY shares have continued on their market-beating trajectory, increasing by nearly 6% in value and crushing the S&P 500 in this timeframe as well.
Image Source: Zacks Investment Research
The strong price action of Dave & Buster’s shares tells us that buyers have been defending the stock all year long, undoubtedly a positive amid all of the red YTD returns in 2022.
In addition to favorable price action, PLAY shares carry rock-solid valuation levels, further displayed by its Style Score of an A for Value.
The company’s 1.1X forward P/S ratio is nicely below its five-year median of 1.4X and represents a steep 18% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook over the last several months, with three downwards revisions hitting the tape. The Zacks Consensus EPS Estimate of $1.01 pencils in a 5.6% Y/Y decrease in quarterly earnings.
Image Source: Zacks Investment Research
However, the company’s top-line is in much better shape, most likely a reflection of soaring costs weighing heavily on margins. The Zacks Consensus Sales Estimate of $432 million reflects year-over-year revenue growth of a substantial 15%.
Quarterly Performance & Market Reactions
Dave & Buster’s has consistently surpassed bottom-line estimates, exceeding the Zacks Consensus EPS Estimate in eight of its previous ten quarters. Just in its latest print, PLAY registered a remarkable 17% bottom-line beat.
Top-line results have also been consistently reported above expectations as of late, with Dave & Buster’s penciling in five revenue beats over its last six quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market has had stellar reactions in response to the company’s quarterly prints recently, with shares moving upwards by double-digit percentages following each of PLAY’s last three earnings releases.
Putting Everything Together
Dave and Buster’s shares have been notably hot year-to-date and over the last month, signaling that buyers have been out in full force.
The company carries solid valuation levels, with its forward P/S ratio nicely beneath its five-year median and Zacks Sector.
Analysts have been bearish in their earnings outlook, with estimates reflecting a decline in earnings but an uptick in revenue – a reflection of margin compression.
Further, PLAY has consistently exceeded quarterly estimates, and the market has reacted strongly following each of its last three prints.
Heading into the release, Dave & Buster’s (PLAY - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 3%.