Arcade company Dave & Buster’s (NASDAQ:PLAY) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
Dave & Buster's missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $534.5 million, down 10.8% year on year. It was a slower quarter for the company, with a miss of analysts’ same-store sales estimates and a slight miss of analysts’ adjusted operating income estimates.
Is Dave & Buster's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dave & Buster’s revenue to decline 3.3% year on year to $568.4 million, a further deceleration from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Dave & Buster’s peers in the leisure facilities segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sphere Entertainment’s revenues decreased 12.7% year on year, meeting analysts’ expectations, and Live Nation reported a revenue decline of 11%, falling short of estimates by 2.8%. Sphere Entertainment traded up 9.3% following the results while Live Nation was also up 1.9%.
Read our full analysis of Sphere Entertainment’s results here and Live Nation’s results here.
Investors in the leisure facilities segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Dave & Buster's is up 7.9% during the same time and is heading into earnings with an average analyst price target of $25.29 (compared to the current share price of $23.86).
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