24/7 Wall St.

Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) is scheduled to release its most recent quarterly results after the markets close on Tuesday. The consensus estimates are calling for $1.12 in earnings per share (EPS) and $371.01 million in revenue. The fiscal first quarter of last year reportedly had $1.04 in EPS and $332.19 million in revenue.

During the fiscal fourth quarter, comparable store sales increased 2.9% on a comparable 52-week basis. This comparable store sales increase was driven by a 3.7% increase in walk-in sales and a 1.4% decrease in special events sales.

Also at that time, total revenues increased 8.8%. Ultimately, this growth was driven by a 10.7% increase in Amusements and Other revenue and a 6.5% increase in Food and Beverage revenue. The mix of Amusement and Other as a percentage of total revenue increased 100 basis points to 55.5% in the fourth quarter of 2018 from 54.5% in last year’s fourth quarter.

Dave & Buster’s detailed some guidance in the fiscal fourth quarter as well. The company expects to see revenues between $1.37 billion and $1.40 billion, with comparable store sales in the range of flat to up 1.5% for the full 2019 fiscal year. Consensus estimates call for $3.08 in EPS and $1.4 billion in revenue for the year.

Excluding Tuesday’s move, Dave & Buster’s had performed more or less in line with the markets, with its stock up about 13.5% year to date. In the past 52 weeks, the stock was up only 9%.

A few analysts weighed in on Dave & Buster’s ahead of the results:

• Maxim Group has a Buy rating with a $67 price target.
• Wells Fargo has an Outperform rating and a $60 price target.
• BMO Capital Markets has an Outperform rating with a $66 target.

Shares of Dave & Buster’s traded down 0.6% at $50.28 in the noon hour Tuesday, in a 52-week range of $42.78 to $67.05. The consensus price target is $63.60.

24/7 Wall St.
Why One Red-Hot Sector Keeps Going Higher Even as Yields Plunge