Dave & Buster’s (PLAY) Q2 Earnings: What To Expect

Arcade company Dave & Buster’s (NASDAQ:PLAY) will be announcing earnings results this Monday afternoon. Here’s what you need to know.

Dave & Buster’s met analysts’ revenue expectations last quarter, reporting revenues of $567.7 million, down 3.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ same-store sales estimates.

Is Dave & Buster’s a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dave & Buster’s revenue to grow 1% year on year to $562.7 million, slowing from the 2.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 9 analysts).

Looking at Dave & Buster’s peers in the leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 3.1%, and Live Nation reported revenues up 16.3%, topping estimates by 3.4%. AMC Entertainment traded up 4.6% following the results while Live Nation was also up 3%.

Read our full analysis of AMC Entertainment’s results here and Live Nation’s results here.

There has been positive sentiment among investors in the leisure facilities segment, with share prices up 7.6% on average over the last month. Dave & Buster’s is down 7.4% during the same time and is heading into earnings with an average analyst price target of $32.71 (compared to the current share price of $23.70).

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