Dave & Buster’s is scheduled to report earnings after Wednesday’s close. The stock just hit a record high of $73.48 in 2017 and is currently trading near $50. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $1.56/share on $612.60 million in revenue. Meanwhile, the so-called Whisper number is a gain of $1.58/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company has grown its earnings over the last few years. In 2020, when Covid-19 hit the company earned $2.94, in 2021 the company lost $4.75 because of the pandemic. Earnings jumped to $2.21 in 2022, and then grew in 2023 to $2.91. Looking forward, the company is expected to earn $3.14 a share in 2024, then $4.04 in 2025 and then $4.99 in 2026! That is impressive earnings growth for a stock that sports a relatively low price to earnings (P/E) ratio of only 16.
A Closer Look At The Technicals
Technically, the stock is under pressure as it is currently trading 28% below its 52-week high. The stock is testing its longer-term 200 day moving average (DMA) line and is below its 50 and 21 DMA lines. Typically, it is healthy to see a stock above those moving average lines and not below them. That said, if the stock gaps up after earnings it can easily continue to rally and get back above those important moving average lines.
Company Profile
Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America.
Its venues offer a menu of entrées and appetizers, as well as a selection of alcoholic and non-alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events.
The company operates its venues under the Dave & Buster’s and Main Event brand name. Dave & Buster’s Entertainment, Inc. was founded in 1982 and is headquartered in Coppell, Texas.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com which is my member’s only stock market newsletter. You are invited to take a free trial to ;earn how it can help you.
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