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Why Is Dave & Buster's (PLAY) Up 1.7% 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 1.7% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Dave & Buster's Q2 Earnings in Line, Revenues Miss
Dave & Buster's reported second-quarter fiscal 2023 results, with earnings in line with the Zacks Consensus Estimate but revenues missing the same. However, both metrics increased on a year-over-year basis.
Earnings & Revenues in Detail
During the fiscal second quarter, the company reported adjusted earnings per share (EPS) of 94 cents, which came in line with the Zacks Consensus Estimate. In the year-ago quarter, it reported adjusted EPS of 85 cents.
Quarterly revenues of $542.1 million lagged the consensus mark of $558 million. Yet, the metric rose 15.7% year over year.
Food and Beverage revenues (33.4% of total revenues in the reported quarter) soared 15.5% year over year to $181.3 million. Entertainment revenues (66.6%) climbed 15.9% year over year to $360.8 million.
Comps Details
During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 6.3% year over year, but grew 5.8% from 2019 levels.
Operating Highlights
During the quarter under discussion, operating income amounted to $77.1 million compared with $56.5 million reported in the prior-year quarter. The operating margin was 14.3% compared with 12.2% reported in the year-ago quarter.
Adjusted EBITDA was $140.3 million compared with $115.7 million reported in the year-earlier quarter.
Balance Sheet
As of Jul 30, 2023, cash and cash equivalents were $82.6 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal second quarter, the company repurchased nearly 2.1 million shares for an aggregate cost of $74.5 million.
At fiscal second-quarter end, net long-term debt totaled $1,278.7 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 revision have trended downward during the past month.
The consensus estimate has shifted -1208.33% due to these changes.
VGM Scores
At this time, Dave & Buster's has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. 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.
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Why Is Dave & Buster's (PLAY) Up 1.7% 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 1.7% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Dave & Buster's Q2 Earnings in Line, Revenues Miss
Dave & Buster's reported second-quarter fiscal 2023 results, with earnings in line with the Zacks Consensus Estimate but revenues missing the same. However, both metrics increased on a year-over-year basis.
Earnings & Revenues in Detail
During the fiscal second quarter, the company reported adjusted earnings per share (EPS) of 94 cents, which came in line with the Zacks Consensus Estimate. In the year-ago quarter, it reported adjusted EPS of 85 cents.
Quarterly revenues of $542.1 million lagged the consensus mark of $558 million. Yet, the metric rose 15.7% year over year.
Food and Beverage revenues (33.4% of total revenues in the reported quarter) soared 15.5% year over year to $181.3 million. Entertainment revenues (66.6%) climbed 15.9% year over year to $360.8 million.
Comps Details
During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 6.3% year over year, but grew 5.8% from 2019 levels.
Operating Highlights
During the quarter under discussion, operating income amounted to $77.1 million compared with $56.5 million reported in the prior-year quarter. The operating margin was 14.3% compared with 12.2% reported in the year-ago quarter.
Adjusted EBITDA was $140.3 million compared with $115.7 million reported in the year-earlier quarter.
Balance Sheet
As of Jul 30, 2023, cash and cash equivalents were $82.6 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal second quarter, the company repurchased nearly 2.1 million shares for an aggregate cost of $74.5 million.
At fiscal second-quarter end, net long-term debt totaled $1,278.7 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 revision have trended downward during the past month.
The consensus estimate has shifted -1208.33% due to these changes.
VGM Scores
At this time, Dave & Buster's has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. 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.