Dave & Buster's (PLAY) to Post Q3 Earnings: What's in Store?
Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report third-quarter fiscal 2019 results on Dec 10.
In the fiscal second quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 4.7%.
Q3 Expectations
The Zacks Consensus Estimate for the third quarter is pegged at a break-even compared with earnings of 30 cents per share reported in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have been stable. For revenues, the consensus mark stands at $297.27 million, suggesting growth of 5.4% from the year-ago reported figure.
Factors at Play
Dave & Buster's top line in the fiscal third quarter is likely to have benefited from robust sales-building initiatives, steady expansion plans, solid performance of food or beverages and brisk entertainment business. The company’s efforts to enhance in-store and out-of-store customer experience via digital are added positives.
However, higher labor costs due to increased wages might have kept profits under pressure. Further, the company’s non-franchised model makes it susceptible to steep expenses. Since all the restaurants are owned and operated by Dave & Buster’s, instead of signing franchise agreements and putting the burden of costs on the same, the company is solely responsible for expenses of operating the business.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Dave & Buster’s this time around. This is because a stock needs to have both — a positive
Dave & Buster’s has an Earnings ESP of 0.00% and a Zacks Rank #3. The combination makes surprise prediction difficult for the stock. You can see
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