|Bid||40.17 x 800|
|Ask||40.21 x 900|
|Day's Range||39.67 - 40.42|
|52 Week Range||38.76 - 67.05|
|Beta (3Y Monthly)||1.44|
|PE Ratio (TTM)||13.38|
|Earnings Date||Sep 12, 2019 - Sep 16, 2019|
|Forward Dividend & Yield||0.60 (1.48%)|
|1y Target Est||63.60|
Benzinga has examined prospects for many investor favorite stocks over the past week. Bullish calls included a company riding low interest rates and a strong homebuilding trend, and a semiconductor stock bucking an otherwise rough trend for the industry. Bearish calls included a restaurant where you can play Skeeball, and negative bet on a couple casino stocks.
The restaurant's slide was way out of proportion to its earnings miss. The automaker's wiggle reflects trust issues.
Dave & Buster's Entertainment, Inc., (NASDAQ:PLAY), ("Dave & Buster's" or "the Company"), an owner and operator of entertainment and dining venues, today announced that the Company’s Board of Directors has declared a quarterly cash dividend of $0.15 per common share, payable on July 10, 2019 to shareholders of record on June 25, 2019. Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster's Entertainment, Inc., is the owner and operator of 128 venues in North America that combine entertainment and dining and offer customers the opportunity to "Eat Drink Play and Watch," all in one location. Dave & Buster's offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. Dave & Buster's currently has stores in 39 states, Puerto Rico, and Canada.
Wells Fargo analyst Jon Tower lowered his rating from Outperform to Market Perform after earnings, saying his confidence is lowered in the company’s ability to sustainably drive same store sales growth without additional margin erosion. “Further, while we believe the company’s strategy to drive new store growth vs. focusing the majority of its energy on same store sales growth is ultimately the proper business decision, we believe that public equity investors will continue to not recognize this value driver without the two engines firing simultaneously,” said Tower. BMO analyst Andrew Strelzik said in a new analyst note that while he recognizes the stock is unlikely to gain traction in the near term, he is maintaining an Outperform rating "as new guidance appears achievable." The analyst did lower his price target from $66 to $55.
Shares of Dave & Buster's (NASDAQ:PLAY) dropped sharply in mid-June after the arcade and themed dining owner reported first-quarter numbers that fell well short of expectations. At the same time, management reduced its full-year revenue and profit guides. Investors were disappointed. PLAY stock dropped more than 20%.Source: Shutterstock This big sell-off, though, is overdone, and with PLAY stock hovering around $40, the medium- to long-term bull thesis looks very compelling here.To be sure, the first quarter numbers weren't good. Comparable sales growth was negative. Revenue growth dropped below 10% for the first time in a long while. Margins compressed meaningfully. Profits growth came in at a multi-quarter low.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Quality Cheap Stocks to Buy With $10 But, if you zoom out, the long term trends here remain favorable. The shift towards an experience economy resonates well for Dave & Buster's comparable sales growth going forward.The unit growth trajectory remains favorable, and Dave & Buster's still projects to grow its unit base by 10% per year over the next several years. Margin compression is moderating and margins should ultimately stabilize.All in all, then, while the near term trends are negative, the long term trends are still positive. Against that backdrop, PLAY stock is trading at its cheapest valuation in recent memory. That combination ultimately paves the way for a huge rebound rally in PLAY stock over the next several months. The Near Term Is UglyThe situation at Dave & Buster's can broadly be summed up in one phrase: it's ugly right now, but it's pretty in the big picture.Right now, things are ugly for the themed dining restaurant and arcade. Comparable sales dropped 0.3% in the quarter, on top of a 4.9% drop last year, so comps are down more than 5% on a two-year basis. That's not good.Further, comps are expected to drop 0.5% this year, versus a 1.6% drop last year, so down more than 2% on a two year basis. That's not good, either. At the same time, margins are compressing, as the adjusted EBITDA margin has fallen by more than 100 basis points year-over-year for three straight quarters.The net result? Profit growth is being muted. A few years back, this was a consistent 20%-plus profit grower. Last quarter, D&B reported just 8.8% profit growth. The Long Term Is PrettyBut, if you zoom out, things are still pretty in the big picture.Most importantly, the experience economy continues to gain mainstream traction, and consumers are increasingly upping spend on experiences.This pivot towards experience-focused consumption benefits Dave & Buster's, since going to D&B is broadly seen by consumers as a fun experience that combines dining and gaming for a fun night out.That's why D&B comps were up 7.3% in 2014, 8.9% in 2015, and 3.3% in 2016. Comps did fall flat in 2017, and have retreated ever since, but that appears to just be normalization after a red hot streak in the middle of the decade.As the laps get easier, the comparable sales growth trend will improve, because the company is aligned with the secular shift towards an experience economy.Further, Dave & Buster's still only operates 127 stores. Management thinks the long term opportunity is 230 to 250 stores. Thus, this company can and will continue to grow its store base by 10% per year for the next several years.Meanwhile, margins are falling, but by less and less each quarter, so margin stabilization seems to be coming in the near future. Once comps improve, margins should improve, too.Overall, then, while negative comps and margin compression is the norm today, it won't be the norm forever. The long term norm here is positive comps and stable margins. D&B will get back to that soon, and when they do, PLAY will rally in a big way. Dave & Buster's Stock Has Big Upside PotentialFollowing the huge post-earnings slide, PLAY now trades at its cheapest valuation in recent memory with a mere 13-times forward earnings multiple.That's dirt cheap for the restaurant sector. The average forward earnings multiple in the restaurant sector is 25. McDonald's (NYSE:MCD) trades at 25-times forward earnings. Yum (NYSE:YUM) trades at 28-times forward earnings. Jack in the Box (NASDAQ:JACK) trades at 20-times forward earnings.More importantly, this valuation discrepancy has nothing to do with growth potential. The average long term earnings growth rate across the restaurant sector is just over 10%. Dave & Buster's will drive 10% unit growth alone over the next several years.Assuming comps come back into slightly positive territory and margins stabilize, that 10% unit growth will produce profit growth well in excess of 10%.Thus, Dave & Buster's has a bigger forward growth trajectory than the average restaurant company, and yet PLAY trades at a huge discount to the average restaurant stock.This disconnect makes no sense and won't last forever. But, while it does last, investors should take advantage of it. This stock has tremendous upside potential from here in the medium to long term. Bottom Line on PLAY StockDave & Buster's had a bad quarter. But, the long term growth trajectory here remains favorable. As such, with PLAY stock plunging and trading at its cheapest valuation in recent memory, now seems like a good time to take advantage of near term weakness.In the medium to long term, PLAY stock will head considerably higher from here.As of this writing, Luke Lango was long PLAY and MCD. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Dave & Buster's Is Coming Back, so Buy the Dip in PLAY Stock appeared first on InvestorPlace.
The Dow Jones Industrial Average ended lower for the second straight session Wednesday as optimism over a near-term trade deal with China faded. shares declined after founder and CEO Elon Musk suggested the carmaker could have a record quarter of deliveries but said that profitability was hard for companies growing as fast as Tesla. Tesla is Real Money's Stock of the Day.
Earnings of $1.13 per share missed consensus expectations of $1.15, while revenue of $363.6 million came up well short of analysts' estimates of $372 million. Comparable-store sales declined 30 basis points year-over-year, too. Kohl's is a holding in Jim Cramer's Action Alerts PLUS member club.
The urban and suburban entertainment landscapes have transformed over the past decade. Today, I have dozen of choices for entertainment and a good meal. Alcohol plus throwing axes: What could be more fun?
Dave & Buster's Entertainment Inc (NASDAQ: PLAY ) reported Tuesday concerning first-quarter earnings , which prompted Wells Fargo to hit the "pause" button. The Analyst Wells Fargo's Jon Tower ...
Dave & Buster's Entertainment Inc. stock plummeted 21.4% in Wednesday trading after the company reported an earnings miss and negative same-store sales, and was subsequently downgraded. Dave & Buster's shares have slumped 9.2% for the year to date as the S&P 500 index has rallied 14.7% for the period. SunTrust Robinson Humphrey moved Dave & Buster's stock down to hold from buy and slashed its price target to $47 from $64. "We continue to expect a same-store sales headwind of ~400 basis points from competition and cannibalization, but no longer expect Dave & Buster's efforts to offset it," analysts wrote. Dave & Buster's attributed the same-store sales weakness to the shift in the Easter holiday, but SunTrust analysts note the launch of new attractions heading into the earnings, including a virtual reality game. "Same-store sales turned negative (~-1.8%) in the last six weeks of 1Q19, driving a same-store sales miss despite the launch of a new VR game, and remain weak ahead of lapping the VR launch last year (June 14). Without positive same-store sales, we no longer expect multiple expansion, despite strong development." Raymond James analysts acknowledge heightened competition, challenges in food and beverages, and lower margins at new, smaller format locations. But they call the stock decline "overdone" and say performance at new locations and returns are still strong. "[W]e'd suggest patient investors resist the temptation to throw in the towel on this still high margin, 10%+ unit growth story," Raymond James wrote. Analysts rate Dave & Buster's stock outperform with a $50 target price, down from $60.
Jim Cramer is keeping a close eye on the markets, whether or not Tesla can reach profitability and his thoughts on Dave & Buster's quarter.
sank 21.9% in trading Wednesday to $40.25 after the restaurant chain reported fiscal first-quarter earnings and sales below estimates and issued fiscal-year guidance lower than its previous forecasts. Earnings in the quarter were $1.13 a share vs. $1.04 a year earlier but were below analysts' forecasts of $1.15. Revenue of $363.6 million also came in higher than a year earlier but it too missed forecasts of $372 million.
Dave & Buster's (PLAY) top line in first-quarter fiscal 2019 gains from robust Amusements and Other revenues as well as Food and Beverage revenues.
(Bloomberg) -- Dave & Buster’s Entertainment Inc. shares tumbled as much as as 20% as several analysts cut their rating following a surprise decline in quarterly comparable sales and a reduced forecast for the key metric.
"But the endless rally needs fuel, and without it you end up with what you got Tuesday, a soggy session that reminds you stocks can go down, too," wrote Cramer. Can Tesla Be Profitable? At a shareholders meeting late Tuesday, Real Money Stock of the Day Tesla CEO Elon Musk discussed profitability.
To me, the bigger thing here was a failure to create a positive trend in comparable-store sales, and the full-year guidance revisions that are not an improvement. Earnings increased to $1.13 per diluted share vs. $1.04 per diluted share a year ago. Net income managed to squeak out an increase to $42.4 million vs. $42.2 million a year ago thanks only to lower tax provisions.