Dave & Buster’s is set to release its earnings report after Wednesday’s market close. The company’s stock is currently trading near $50, after reaching a record high of $73.48 in 2017. The stock is known for making significant moves after reporting earnings, potentially gapping up if the numbers are strong or gapping down if they disappoint. Analysts are expecting the company to report earnings of $1.56 per share on revenue of $612.60 million, with the unofficial “Whisper number” slightly higher at $1.58 per share.
In terms of fundamentals, Dave & Buster’s has shown strong earnings growth in recent years. Despite the challenges posed by the Covid-19 pandemic, the company managed to post earnings of $2.94 in 2020, followed by a loss of $4.75 in 2021. Earnings rebounded to $2.21 in 2022 and further increased to $2.91 in 2023. Looking ahead, analysts are forecasting earnings of $3.14 per share in 2024, $4.04 in 2025, and $4.99 in 2026. Despite this impressive growth, the stock has a relatively low price-to-earnings (P/E) ratio of 16.
On a technical level, the stock is currently under pressure, trading 28% below its 52-week high. It is also testing its 200-day moving average (DMA) line and is below both its 50-day and 21-day DMA lines. Typically, it is considered healthy for a stock to be trading above these moving average lines. However, if the stock gapped up after earnings, it could potentially rally and move back above these important levels.
Dave & Buster’s Entertainment, Inc. operates entertainment and dining venues for adults and families in North America. The venues offer a menu of food and beverages, along with entertainment attractions focused on games and live sports. The company operates under the Dave & Buster’s and Main Event brand names, with its headquarters located in Coppell, Texas. Investors should pay close attention to how the stock reacts to the earnings news, as market sentiment and company performance are key factors in stock movement.
In conclusion, monitoring how the market and specific companies react to earnings news is crucial during earnings season. It is important to keep losses small and stay flexible in response to market movements. Dave & Buster’s stock has been featured on FindLeadingStocks.com, a member’s only stock market newsletter where investors can access additional insights and analysis. Interested individuals can take advantage of a free trial to learn more about how the newsletter can help their investment decisions.
