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What To Expect From Dave & Buster’s (PLAY) Q3 Earnings

PLAY Cover Image

Arcade company Dave & Buster’s (NASDAQ: PLAY) will be announcing earnings results this Tuesday after the bell. Here’s what to expect.

Dave & Buster's missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $557.4 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Is Dave & Buster's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Dave & Buster’s revenue to grow 1.8% year on year to $461.1 million, a reversal from the 3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.04 per share.

Dave & Buster's Total Revenue

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 Q3 results, giving us a hint as to what we can expect. AMC Entertainment’s revenues decreased 3.6% year on year, beating analysts’ expectations by 6.3%, and Topgolf Callaway reported a revenue decline of 7.8%, topping estimates by 2.3%. AMC Entertainment traded up 3.2% following the results while Topgolf Callaway was also up 14.3%.

Read our full analysis of AMC Entertainment’s results here and Topgolf Callaway’s results here.

There has been positive sentiment among investors in the leisure facilities segment, with share prices up 3.4% on average over the last month. Dave & Buster's is up 26.7% during the same time and is heading into earnings with an average analyst price target of $27.25 (compared to the current share price of $17.31).

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