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Factors Likely to Shape Dave & Buster's (PLAY) Q4 Earnings

Zacks Equity Research
·4-min read

Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report fourth-quarter fiscal 2019 results on Apr 2.

Q4 Expectations

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at 70 cents. This indicates 6.7% decline from 75 cents registered in the year-ago quarter. Revenues are expected to be $349.3 million, suggesting growth of 5.3% from the prior-year quarter’s reported figure.

Dave & Buster's Entertainment, Inc. Price and EPS Surprise

 

Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Dave & Buster's Entertainment, Inc. Price and EPS Surprise

Dave & Buster's Entertainment, Inc. price-eps-surprise | Dave & Buster's Entertainment, Inc. Quote

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Factors at Play

Dave & Buster's top line in the fiscal fourth quarter is likely to have benefited from robust sales-building initiatives, steady expansion plans, solid performance of food or beverages and brisk entertainment business. 

The Zacks Consensus Estimate for revenues in the food or beverages segment is pegged at $151 million, which calls for an increase of 2.2% from the year-ago quarter’s reported figure.

The company’s Amusement and other revenues are likely to have also favored the company’s top line. The Zacks Consensus Estimate for revenues in the segment is at $194 million, which indicates 5.4% growth from the prior-year quarter’s reported figure.

Meanwhile, the company continues to evolve its amusement strategy on the back of new and riveting content, including games based on some of the world’s finest movie properties.

However, higher labor costs due to increased wages are likely to have Had a negative impact on profits in the quarter to be reported. Further, the company’s non-franchised model makes it susceptible to steep expenses.

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 chances of beating estimates.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Dave & Buster’s has an Earnings ESP of -2.39% and a Zacks Rank #5 (Strong Sell). The combination makes surprise prediction difficult for the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Dunkin' Brands Group, Inc. DNKN reported fourth-quarter fiscal 2019 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Its adjusted earnings of 73 cents per share surpassed the consensus mark of 70 cents by 4.3%. Revenues were up 5.1% year over year to $335.9 million and beat the consensus mark of $335 million by 0.3%.

BJ's Restaurants, Inc. BJRI reported fourth-quarter 2019 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Adjusted earnings of 53 cents per share beat the Zacks Consensus Estimate of 44 cents by 20.5%. Moreover, the bottom line increased 8.2% year over year. Total quarterly revenues of $291.1 million missed the consensus mark of $291.5 million by a marginal 0.1%. However, the top line rose 3.8% year over year, driven by a 3% rise in total restaurant operating weeks and a 0.4% increase in average weekly sales.

Chipotle Mexican Grill, Inc. CMG reported fourth-quarter 2019 results, with earnings and revenues surpassing the respective Zacks Consensus Estimate. The company’s adjusted earnings of $2.86 per share surpassed the Zacks Consensus Estimate of $2.74. The bottom line also surged 66.3% from the year-ago quarter’s figure, driven by increased revenues and strong operating margins. Further, quarterly revenues of $1.4 billion exceeded the consensus mark by 2.7% and rose 17.6% year over year as well.

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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
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