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Dave & Buster's Q3 Earnings & Revenues Miss Estimates, Stock Down
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Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported tepid third-quarter fiscal 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Both metrics declined on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company's third-quarter performance (traditionally its lowest seasonal volume period) faced challenges compared to the previous year due to a fiscal calendar mismatch, unfavorable weather in key regions, disruptions from remodel construction at certain locations and unusual items that influenced prior-year comparability.
Following the results, the company’s shares fell 11.2% during the after-hours trading session yesterday.
PLAY’s Q3 Earnings & Revenues
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
For the fiscal third quarter, the company reported an adjusted loss per share of 45 cents, wider than the Zacks Consensus Estimate of a loss of 42 cents. In the year-ago quarter, it reported an adjusted earnings per share (EPS) of 1 cent.
Quarterly revenues of $453 million missed the consensus mark of $460 million. The top line declined 3% from $466.9 million reported in the prior-year quarter.
Food and Beverage revenues (35% of total revenues in the reported quarter) declined 3.9% year over year to $158.4 million. Entertainment revenues (65%) fell 2.5% year over year to $294.6 million.
Comps Details
During the quarter under discussion, comparable store sales (including Main Event branded stores) declined 7.7% year over year.
Operating Highlights
During the fiscal third quarter, operating income amounted to $6.3 million compared with $18.6 million in the prior-year quarter. The operating margin was 1.4% compared with 4% in the year-ago quarter. Our estimate for the metric was 0.4%.
Adjusted EBITDA during the quarter came in at $68.3 million compared with $81.6 million reported in the year-earlier quarter. Our estimate for the metric was $58.6 million.
Balance Sheet
As of Nov. 5, 2024, cash and cash equivalents were $8.6 million compared with $37.3 million as of Feb. 4, 2024.
At the fiscal third-quarter end, net long-term debt totaled approximately $1.44 billion compared with $1.28 billion as of Feb. 4, 2024.
Other Updates
During the fiscal third quarter, Dave & Buster’s achieved notable progress in advancing its long-term strategic goals. The company opened three new locations, including two Dave & Buster’s stores in Barboursville, WV, and Lombard, IL, along with a new Main Event store in Grand Rapids, MI. Following the quarter’s end, the company opened a Dave & Buster’s location in Clarksville, TN.
The company completed 11 fully programmed remodels and reported strong performance regarding the same. It plans to remodel 44 stores by the end of fiscal 2024.
PLAY’s Zacks Rank & Key Picks
Dave & Buster currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
DECK has a trailing four-quarter earnings surprise of 41.1%, on average. The stock has gained 16.7% in the past six months. The Zacks Consensus Estimate for DECK’s fiscal 2025 sales and EPS indicates growth of 13.6% and 12.8%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) presently flaunts a Zacks Rank of 1. EAT has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has surged 86.2% in the past six months.
The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 7.9% and 34.6%, respectively, from the year-ago period’s levels.
Sprouts Farmers Market, Inc. (SFM - Free Report) currently sports a Zacks Rank of 1. SFM has a trailing four-quarter earnings surprise of 15.3%, on average. The stock has risen 95.4% in the past six months.
The Zacks Consensus Estimate for SFM’s 2025 sales and EPS indicates a rise of 10% and 14.4%, respectively, from the year-ago period’s levels.
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Dave & Buster's Q3 Earnings & Revenues Miss Estimates, Stock Down
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported tepid third-quarter fiscal 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Both metrics declined on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company's third-quarter performance (traditionally its lowest seasonal volume period) faced challenges compared to the previous year due to a fiscal calendar mismatch, unfavorable weather in key regions, disruptions from remodel construction at certain locations and unusual items that influenced prior-year comparability.
Following the results, the company’s shares fell 11.2% during the after-hours trading session yesterday.
PLAY’s Q3 Earnings & Revenues
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Buster's Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Buster's Entertainment, Inc. Quote
For the fiscal third quarter, the company reported an adjusted loss per share of 45 cents, wider than the Zacks Consensus Estimate of a loss of 42 cents. In the year-ago quarter, it reported an adjusted earnings per share (EPS) of 1 cent.
Quarterly revenues of $453 million missed the consensus mark of $460 million. The top line declined 3% from $466.9 million reported in the prior-year quarter.
Food and Beverage revenues (35% of total revenues in the reported quarter) declined 3.9% year over year to $158.4 million. Entertainment revenues (65%) fell 2.5% year over year to $294.6 million.
Comps Details
During the quarter under discussion, comparable store sales (including Main Event branded stores) declined 7.7% year over year.
Operating Highlights
During the fiscal third quarter, operating income amounted to $6.3 million compared with $18.6 million in the prior-year quarter. The operating margin was 1.4% compared with 4% in the year-ago quarter. Our estimate for the metric was 0.4%.
Adjusted EBITDA during the quarter came in at $68.3 million compared with $81.6 million reported in the year-earlier quarter. Our estimate for the metric was $58.6 million.
Balance Sheet
As of Nov. 5, 2024, cash and cash equivalents were $8.6 million compared with $37.3 million as of Feb. 4, 2024.
At the fiscal third-quarter end, net long-term debt totaled approximately $1.44 billion compared with $1.28 billion as of Feb. 4, 2024.
Other Updates
During the fiscal third quarter, Dave & Buster’s achieved notable progress in advancing its long-term strategic goals. The company opened three new locations, including two Dave & Buster’s stores in Barboursville, WV, and Lombard, IL, along with a new Main Event store in Grand Rapids, MI. Following the quarter’s end, the company opened a Dave & Buster’s location in Clarksville, TN.
The company completed 11 fully programmed remodels and reported strong performance regarding the same. It plans to remodel 44 stores by the end of fiscal 2024.
PLAY’s Zacks Rank & Key Picks
Dave & Buster currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Deckers Outdoor Corporation (DECK - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
DECK has a trailing four-quarter earnings surprise of 41.1%, on average. The stock has gained 16.7% in the past six months. The Zacks Consensus Estimate for DECK’s fiscal 2025 sales and EPS indicates growth of 13.6% and 12.8%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) presently flaunts a Zacks Rank of 1. EAT has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has surged 86.2% in the past six months.
The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 7.9% and 34.6%, respectively, from the year-ago period’s levels.
Sprouts Farmers Market, Inc. (SFM - Free Report) currently sports a Zacks Rank of 1. SFM has a trailing four-quarter earnings surprise of 15.3%, on average. The stock has risen 95.4% in the past six months.
The Zacks Consensus Estimate for SFM’s 2025 sales and EPS indicates a rise of 10% and 14.4%, respectively, from the year-ago period’s levels.