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What's in Store for Dave & Buster's (PLAY) in Q3 Earnings?

Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report third-quarter fiscal 2022 results on Dec 6. In the last reported quarter, the company missed earnings by 39.6%.

Q3 Estimates

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 4 cents per share, compared with 21 cents per share in the year-ago reported quarter. The consensus mark for revenues stands at $479.7 million, suggesting growth of 50.9% from the prior-year quarter.

Factors to Note

Dave & Buster's fiscal third-quarter performance is likely to have benefited from the opening of stores in the last twelve months, robust digital sales and sales-building efforts. Robust comps growth is likely to have aided the company’s top line in the to-be-reported quarter. During the first five weeks of third-quarter fiscal 2022, the company’s comps rose 22.1% from the 2019 level. Walk-in comparable store sales rose 24.7%.

The robust performance of Food and beverage, and Amusement and others segments might have driven the company’s performance in the quarter to be reported. The Zacks Consensus Estimate for Food and beverage segment’s revenues is pegged at $159 million, suggesting an improvement of 17.1% year over year. The consensus mark for amusement and others segment’s revenues stands at $300 million, indicating an improvement of 47.2% year over year.

However, a challenging macro environment, including inflationary pressure on labor and commodities, is likely to have dented margin. The company anticipates the headwinds to persist over the next few quarters as the industry players expect these factors to prevail. The company has been witnessing labor challenges in a handful of markets.

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

What the Zacks Model Unveils

Our proven model doesn’t conclusively 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.

Earnings ESP: Dave & Buster’s has an Earnings ESP of +50.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell) at present.

Stocks Poised to Beat Earnings Estimates

Here are some companies in the Retail-Wholesale space, which, per our model, have the right combination of elements to post an earnings beat in the upcoming releases:

The Kroger Co. KR currently has an Earnings ESP of +1.95% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Kroger have increased 15.3% in the past year. KR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 15.7%, on average.

Brinker International, Inc. EAT has an Earnings ESP of +0.74% and a Zacks Rank #3.

Shares of Brinker have declined 0.8% in the past year. EAT has a trailing four-quarter earnings surprise of 9.7%, on average.

Dollar General Corporation DG currently has an Earnings ESP of +1.58% and a Zacks Rank #2.

Shares of Dollar General have increased 12.4% in the past year. DG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 2.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dollar General Corporation (DG) : Free Stock Analysis Report

Brinker International, Inc. (EAT) : Free Stock Analysis Report

The Kroger Co. (KR) : Free Stock Analysis Report

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

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