Dave & Buster’s, the popular arcade company, is set to announce its earnings results tomorrow. In the previous quarter, the company met analysts’ revenue expectations, reporting revenues of $599.1 million, which was a 6.3% increase year on year. However, they fell short of analysts’ earnings estimates.
As we look ahead to the upcoming earnings report, analysts are expecting Dave & Buster’s revenue to grow by 3.4% to $617.6 million compared to the same quarter last year. Adjusted earnings are projected to be $1.72 per share for this quarter.
Despite some challenges in the past, the majority of analysts covering the company have maintained their estimates, indicating confidence in Dave & Buster’s performance. It is worth noting that the company has missed Wall Street’s revenue estimates four times over the last two years.
In comparison to its peers in the leisure facilities industry, some companies have already reported their Q1 results. For example, United Parks & Resorts saw a 1.4% increase in revenue year-on-year, surpassing analysts’ expectations. On the other hand, Topgolf Callaway experienced a 2% decline in revenue, falling short of estimates.
The market outlook for growth stocks has been mixed, with valuation multiples not yet returning to early 2021 levels. Despite some volatility, Dave & Buster’s is down 13.2% in the past month, with an average analyst price target of $73.
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In conclusion, investors and analysts will be closely watching Dave & Buster’s Q1 earnings report to assess the company’s performance and future prospects in the competitive leisure industry. Stay tuned for updates on how the company fares in the upcoming quarter.