Can Dave & Buster’s Earnings Bring Back Bulls?

What's Happening With PLAY View more about PLAY >

Dave & Buster’s (PLAY) will report its second-quarter numbers September 10. The company will report before the market open with the consensus calling for earnings of $0.86 per share, up from $0.84 last year. PLAY stock is down 5.2% on the year.

Technical Analysis

PLAY was recently trading at $42.21 down $24.84 from its 12-month high and $5 above its 12-month low. InvestorsObserver’s Stock Score Report gives PLAY a 21 long-term technical score and a 47 short-term technical score. The stock has recent support above $38 and recent resistance below $46. Of the 11 analysts who cover the stock 6 rate it Strong Buy, 1 rate it Buy, 4 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, PLAY gets a score of 50 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

PLAY is trading just above its 52-week low after trading sharply lower following the company’s first-quarter sales miss in June. The weaker than expected sales drove the stock to a 52-week low and shares have traded in a pretty tight sideways pattern since the sell off. Dave and Buster’s remains a strong growth story with profits forecast to rise 12% per year over the next five years, and the stock currently trades at just 13 times future earnings. There is a lot of negativity priced into PLAY after last quarter’s report, and with such a low valuation the downside is somewhat limited ahead of its Q2 report and there is a good chance for a strong rally as long as the company is able to report numbers that are in-line with the consensus on both the top and bottom line. Analysts believe the stock is trading in oversold territory and have an average price target of $53.33.

PLAY
About Dave & Buster's Entertainment Inc.

Dave & Buster's Entertainment Inc owns and operates nearly a hundred entertainment and dining establishments in the United States where customers can eat, drink, play games, and watch televised sports. The play division includes amusement, simulation, and video games, accounts for more than half of total company revenue. Food and beverage accounts for the rest. About one third of food and beverage revenue comes from alcoholic drinks, with the rest coming from food and nonalcoholic beverages.

  • Last Price:
    $40.92
  • Previous Close:
    $40.76
  • Change:
    $0.16 (0.39%)
  • Open:
    $40.86
  • Volume:
    732,145
  • Average Volume (100 Day):
    1,303,993
  • Market Capitalization:
    $1.3 B
  • Day's Range:
    $40.33 - $41.15
  • Dividend Yield:
    1.47%
  • 52-week Range:
    $67 - $37.21
  • P-E:
    13.70
  • EPS:
    $3.02
  • Earnings Date:
    12/10/19
  • Ex Dividend Date:
    6/24/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Restaurants
  • Analyst Average Recommendation:
    Moderate Buy

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