It has been about a month since the last earnings report for Dave & Buster's (PLAY Quick QuotePLAY - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Dave & Buster's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Dave & Buster's Q4 Earnings Beat Estimates, Rise Y/Y

Dave & Buster's reported impressive fourth-quarter fiscal 2022 results with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The upside was backed by robust comparable walk-in sales growth and strong recovery in its special events business.

Earnings & Revenues in Detail

During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 80 cents, surpassing the Zacks Consensus Estimate of 73 cents by 9.6%. In the year-ago quarter, it had reported an adjusted EPS of 52 cents.

Quarterly revenues of $563.8 million surpassed the consensus mark of $537 million. In the prior-year quarter, the company reported revenues of $343.1 million. Revenues jumped 62.4% from fourth-quarter fiscal 2019.

Food and Beverage revenues (36.1% of total revenues in the fiscal fourth quarter) soared 69.5% year over year to $203.6 million. Amusement and Other revenues (63.9%) increased 61.5% year over year to $360.2 million.

Comps Details

During the fiscal fourth quarter, pro forma comparable store sales (including Main Event branded stores) increased 19% year over year and 14.1% from 2019 levels. During the quarter, pro forma combined walk-in comparable store sales increased 12.1% year over year.

Operating Highlights

During the fiscal fourth quarter, operating income amounted to $77.2 million compared with $46.5 million reported in the prior-year quarter. The operating margin was 13.8% compared with 13.6% reported in the prior-year quarter. During the quarter, adjusted EBITDA was $138.4 million compared with $84.9 million reported in the prior-year quarter.

Balance Sheet

As of Jan 29, 2023, cash and cash equivalents totaled $181.6 million compared with $108.2 million as of Oct 30, 2022.

At the end of the fiscal fourth quarter, net long-term debt totaled $1,222.7 million compared with $1,222.2 million at the end of third-quarter fiscal 2022.

Fiscal 2022 Highlights

Total revenues in fiscal 2022 came in at $ 1,964.4 million compared with $1,304.1 million in fiscal 2021.

Operating income in fiscal 2022 came in at $262.5 million compared with $187.2 million in fiscal 2021.

In fiscal 2022, adjusted EPS came in at $2.79 compared with $2.21 reported in the previous year.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -16.9% due to these changes.

VGM Scores

At this time, Dave & Buster's has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Dave & Buster's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.