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Why Is Dave & Buster's (PLAY) Up 8.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dave & Buster's due for a pullback? 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 catalysts.
Dave & Buster's Q1 Earnings & Revenues Beat Estimates
Dave & Buster's reported impressive first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The upside was backed by strong Special Event business, store expansions and cost-saving efforts.
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of $1.45, surpassing the Zacks Consensus Estimate of $1.17 by 23.9%. In the year-ago quarter, it had reported an adjusted EPS of $1.35.
Quarterly revenues of $597.3 million surpassed the consensus mark of $597 million. In the prior-year quarter, the company reported revenues of $451.1 million.
Food and Beverage revenues (34.2% of total revenues in the fiscal first quarter) soared 34.4% year over year to $204.2 million. Entertainment revenues (65.8%) increased 31.4% year over year to $393.1 million.
Comps Details
During the fiscal first quarter, pro-forma comparable store sales (including Main Event branded stores) declined 4.1% year over year, but increased 10.3% from 2019 levels. During the quarter, pro-forma combined walk-in comparable store sales declined 6.4% year over year.
Operating Highlights
During the fiscal first quarter, operating income amounted to $121.4 million compared with $98.7 million reported in the prior-year quarter. The operating margin was 20.2% compared with 21.8% reported in the prior-year quarter.
During the quarter, adjusted EBITDA was $182.1 million compared with $140.3 million reported in the prior-year quarter.
Balance Sheet
As of Apr 30, 2023, cash and cash equivalents totaled $91.5 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal first quarter, the company repurchased nearly 3.6 million shares for an aggregate cost of $125.5 million. As of Jun 6, 2023, the company stated the availability of $100 million under its repurchase program.
At the end of the fiscal first quarter, net long-term debt totaled $1,221.1 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Dave & Buster's has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Dave & Buster's has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Dave & Buster's (PLAY) Up 8.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dave & Buster's due for a pullback? 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 catalysts.
Dave & Buster's Q1 Earnings & Revenues Beat Estimates
Dave & Buster's reported impressive first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The upside was backed by strong Special Event business, store expansions and cost-saving efforts.
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of $1.45, surpassing the Zacks Consensus Estimate of $1.17 by 23.9%. In the year-ago quarter, it had reported an adjusted EPS of $1.35.
Quarterly revenues of $597.3 million surpassed the consensus mark of $597 million. In the prior-year quarter, the company reported revenues of $451.1 million.
Food and Beverage revenues (34.2% of total revenues in the fiscal first quarter) soared 34.4% year over year to $204.2 million. Entertainment revenues (65.8%) increased 31.4% year over year to $393.1 million.
Comps Details
During the fiscal first quarter, pro-forma comparable store sales (including Main Event branded stores) declined 4.1% year over year, but increased 10.3% from 2019 levels. During the quarter, pro-forma combined walk-in comparable store sales declined 6.4% year over year.
Operating Highlights
During the fiscal first quarter, operating income amounted to $121.4 million compared with $98.7 million reported in the prior-year quarter. The operating margin was 20.2% compared with 21.8% reported in the prior-year quarter.
During the quarter, adjusted EBITDA was $182.1 million compared with $140.3 million reported in the prior-year quarter.
Balance Sheet
As of Apr 30, 2023, cash and cash equivalents totaled $91.5 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal first quarter, the company repurchased nearly 3.6 million shares for an aggregate cost of $125.5 million. As of Jun 6, 2023, the company stated the availability of $100 million under its repurchase program.
At the end of the fiscal first quarter, net long-term debt totaled $1,221.1 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Dave & Buster's has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Dave & Buster's has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.