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Factors Likely to Shape Dave & Buster's (PLAY) Q1 Earnings

Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report first-quarter fiscal 2023 results on Jun 6, 2023, after market close. In the last reported quarter, the company delivered an earnings surprise of 9.6%.

Q1 Expectations

The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is pegged at $1.17, indicating a decline of 13.3% from $1.35 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $597.2 million. The metric suggests an increase of 32.4% from the year-ago quarter’s figure.

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

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Let’s discuss the factors that are likely to get reflected in the quarter to be reported.

Factors at Play

Dave & Buster's fiscal first-quarter performance is likely to have benefited from its Special Events business, digital initiatives and entertainment offerings. During the previous quarter, the company reported improvements in its website, featuring special event capabilities, e-commerce and programming content. The company stated that its Special Event's business had nearly recovered to pre-COVID levels. Given the focus on international franchisee network and location-based entertainment offerings the momentum is likely to have continued in the to-be-reported quarter. The emphasis on data and digital innovation capabilities are likely to have driven relevancy, media efficiency and tech-enabled hospitality.

Solid performance of food and beverage and amusement and other is likely to get reflected in the company’s quarterly numbers. Our model predicts fiscal first quarter food and beverage revenues to rise 33.9% year over year to $203.4 million. We expect Amusement and other revenues to rise 27.9% year over year to $382.8 million.

However, a challenging macro environment, including inflationary pressure on labor and commodities, is likely to have dented margin in the fiscal first 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 -0.71%. 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.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat:

Bath & Body Works BBWI currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is likely to register a decrease in the bottom line when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 32 cents suggests a decline of 38.5% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bath & Body Works’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.57 billion, which indicates a decline of 3% from the figure reported in the prior-year quarter. Bath & Body Works has a trailing four-quarter earnings surprise of 44.6%, on average.

Macy’s M currently has an Earnings ESP of +2.81% and a Zacks Rank of #3. The company is likely to register a decline in the bottom line when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of 46 cents suggests a decrease of 57.4% from the year-ago quarter.

Macy’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.11 billion, suggesting a drop of 4.4% from the figure reported in the prior-year quarter. Macy’s delivered an earnings beat of 60.7%, on average, in the trailing four quarters.

Restaurant Brands International Inc. QSR currently has an Earnings ESP of +1.00% and a Zacks Rank #3. The company is expected to register a fall in the bottom line when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 75 cents suggests a decline of 8.5% from the year-ago quarter.

Restaurant Brands’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.73 billion, indicating an increase of 5.4% from the figure reported in the year-ago quarter. QSR has a trailing four-quarter earnings surprise of 12.9%, on average.

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

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Macy's, Inc. (M) : Free Stock Analysis Report

Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report

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

Bath & Body Works, Inc. (BBWI) : Free Stock Analysis Report

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