What's in Store for Dave & Buster's (PLAY) in Q4 Earnings?
Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report fourth-quarter fiscal 2023 results on Apr 2, 2024, after market close. In the last reported quarter, the company posted an earnings surprise of 104.6%.
Q4 Expectations
The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) is pegged at $1.10, indicating growth of 37.5% from 80 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $602.4 million. The metric suggests growth of 6.9% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Dave & Buster's Entertainment, Inc. price-eps-surprise | Dave & Buster's Entertainment, Inc. Quote
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal fourth-quarter top line is expected to increase from the year-ago quarter’s levels, courtesy of strength in new store openings, digital marketing engine and game pricing optimizations. This and the implementation of a new ERP system and rollout of new footfall traffic technology are likely to have contributed to additional revenues and adjusted EBITDA in the to-be-reported quarter. Our model predicts fiscal fourth-quarter adjusted EBITDA to rise 3.4% year over year to $143.1 million.
Gradual enhancement in food check totals, overall satisfaction ratings, and food and beverage attach rates (courtesy of the Phase 3 testing of the D&B menu) are likely to have aided the company’s performance in the to-be-reported quarter.
The focus on introducing cutting-edge entertainment offerings, improving food and beverage sales through operational enhancements and a contemporary design, boosting special event sales with group-oriented entertainment options and enhancing guest engagement are promising developments.
Our model predicts fiscal fourth-quarter Food and Beverage revenues to rise 7.9% year over year to $219.6 million. Entertainment revenues are expected to rise 7.3% year over year to $386.5 million.
The company’s fiscal fourth-quarter operations are likely to have navigated through a distinctive and intricate macroeconomic setting, faced with difficult comparisons with the previous year’s levels (primarily due to strong demand following the COVID-19 pandemic).
Increased operating expenses are likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 6.8% year over year to $519.5 million in the fiscal fourth quarter.
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 odds of an earnings beat. But that's not the case here.
Earnings ESP: Dave & Buster’s has an Earnings ESP of -4.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Domino's Pizza, Inc. DPZ currently has an Earnings ESP of +0.16% and a Zacks Rank of 3.
Shares of DPZ have gained 49% in the past year. DPZ’s earnings beat estimates in all of the trailing four quarters, the average surprise being 10.3%.
Chipotle Mexican Grill, Inc. CMG has an Earnings ESP of +1.01% and a Zacks Rank #3.
The company’s shares have increased 78.8% in the past year. CMG’s earnings beat estimates in all of the trailing four quarters, the average surprise being 9.1%.
Bloomin' Brands, Inc. BLMN has an Earnings ESP of +1.63% and a Zacks Rank #3.
The company's shares have gained 11.7% in the past year. BLMN’s earnings beat estimates in all of the trailing four quarters, the average surprise being 11.3%.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
