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Factors Likely to Shape Dave & Buster's (PLAY) Q3 Earnings
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Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report third-quarter fiscal 2023 results on Dec 5, 2023, after market close. In the previous quarter, the company’s earnings matched the Zacks Consensus Estimate of 94 cents.
Q3 Expectations
The Zacks Consensus Estimate for fiscal third-quarter bottom line is pegged at a loss of 19 cents per share. In the year-ago quarter, the company reported earnings per share (EPS) of 4 cents.
For revenues, the consensus mark is pegged at $472.9 million. The metric suggests a decline of 1.7% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal third-quarter top line is likely to have benefitted from store expansions, marketing campaigns and strong special event business. This and strength in advance group bookings coupled with the introduction of new entertainment offerings (in accordance with the store remodel program) are likely to have driven the company’s performance in the to-be-reported quarter. Our model predicts fiscal third-quarter Entertainment revenues to rise 5.1% year over year to $413 million.
The emphasis on simplified menu offerings, technological investments and labor model optimization are likely to have paved a path for improvement in attachment rate, revenues and profit generation in the to-be-reported quarter.
The soft performance of food and beverage is likely to be reflected in the company’s quarterly numbers. Our model predicts fiscal third-quarter food and beverage revenues to fall 4.3% year over year to $158.8 million.
A challenging macro environment, including inflationary pressures on labor and commodities, is likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 3.1% year over year to $465.1 million in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not predict 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. But that's not the case here.
Earnings ESP: Dave & Buster’s has an Earnings ESP of -54.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Costco (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 3.
Shares of COST have gained 9% in the past year. COST’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 2.1%.
Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #3.
The company’s shares have increased 11.7% in the past year. CHUY’s earnings beat estimates in all of the trailing four quarters, the average surprise being 24.8%.
McDonald's Corporation (MCD - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3.
The company's shares have gained 2.8% in the past year. MCD’s earnings beat estimates in all of the trailing four quarters, the average surprise being 10%.
Image: Shutterstock
Factors Likely to Shape Dave & Buster's (PLAY) Q3 Earnings
Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report third-quarter fiscal 2023 results on Dec 5, 2023, after market close. In the previous quarter, the company’s earnings matched the Zacks Consensus Estimate of 94 cents.
Q3 Expectations
The Zacks Consensus Estimate for fiscal third-quarter bottom line is pegged at a loss of 19 cents per share. In the year-ago quarter, the company reported earnings per share (EPS) of 4 cents.
For revenues, the consensus mark is pegged at $472.9 million. The metric suggests a decline of 1.7% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Dave & Buster's Entertainment, Inc. price-eps-surprise | Dave & Buster's Entertainment, Inc. Quote
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal third-quarter top line is likely to have benefitted from store expansions, marketing campaigns and strong special event business. This and strength in advance group bookings coupled with the introduction of new entertainment offerings (in accordance with the store remodel program) are likely to have driven the company’s performance in the to-be-reported quarter. Our model predicts fiscal third-quarter Entertainment revenues to rise 5.1% year over year to $413 million.
The emphasis on simplified menu offerings, technological investments and labor model optimization are likely to have paved a path for improvement in attachment rate, revenues and profit generation in the to-be-reported quarter.
The soft performance of food and beverage is likely to be reflected in the company’s quarterly numbers. Our model predicts fiscal third-quarter food and beverage revenues to fall 4.3% year over year to $158.8 million.
A challenging macro environment, including inflationary pressures on labor and commodities, is likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 3.1% year over year to $465.1 million in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not predict 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. But that's not the case here.
Earnings ESP: Dave & Buster’s has an Earnings ESP of -54.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Costco (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 3.
Shares of COST have gained 9% in the past year. COST’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 2.1%.
Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #3.
The company’s shares have increased 11.7% in the past year. CHUY’s earnings beat estimates in all of the trailing four quarters, the average surprise being 24.8%.
McDonald's Corporation (MCD - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3.
The company's shares have gained 2.8% in the past year. MCD’s earnings beat estimates in all of the trailing four quarters, the average surprise being 10%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.