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The Zacks Analyst Blog Highlights: Dave & Buster's

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For Immediate Release

Chicago, IL – June 11, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Dave & Buster's (PLAY - Free Report) .

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Here are highlights from Friday’s Analyst Blog:

Is Dave & Buster’s (PLAY - Free Report) Set to Beat on Q1 Earnings?

Shares of Dave & Buster's climbed over 2.3% through late afternoon trading on Friday in a sign that investors might be expecting strong first-quarter results from the restaurant and arcade chain when it reports after the closing bell on Monday. Let’s take a look to see if they should be so confident.

Dave & Buster's has seen its stock price climb over 12% during the last four weeks, prior to Friday’s surge. Yet, shares of PLAY are still down roughly 35% over the last year. The company closed at $47.56 per share on Thursday, down over 30% from its 52-week high of $71.50 per share.

With that said, shares of Dave & Buster's could continue their month-long charge if the company reports solid Q1 financial results.

Q1 Outlook

Dave & Buster's is projected to report quarterly revenues of $322.27 million, based on our current Zacks Consensus Estimates. This would mark a nearly 6% climb from the year-ago period when the company posted quarterly revenues of $304.15 million.

At the other, sometimes more important end of the income statement, Dave & Buster's adjusted quarterly earnings are expected to pop by 6.9% to touch $0.93 per share. Still, investors also need to understand what chance Dave & Buster's has to top our earnings estimate, as this could help its stock price keep on moving upward, while a miss could lead to a decline—at least in the near-term.  

Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to surprise, either way. This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

In contrast, a stock with a Zacks Rank #3 (Hold) or worse, coupled with a negative Earnings ESP, is one that we typically want to avoid during earnings season.

Dave & Buster's is currently a Zacks Rank #3 (Hold) and sports an Earnings ESP of -0.36%. Therefore, investors can consider PLAY a stock that could fall short of quarterly earnings estimates when it reports its Q1 financial results after market close on Monday. 

However, investors should note that Dave & Buster's has topped quarterly earnings estimates every quarter since the restaurant and arcade chain went public back in 2014.

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



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