Dave & Buster's Enter's Earnings: A Preview

Dave & Buster's Enter (NASDAQ:PLAY) will release its quarterly earnings report on Monday, 2025-04-07. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Dave & Buster's Enter to report an earnings per share (EPS) of $0.72.

Dave & Buster's Enter bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

Last quarter the company missed EPS by $0.09, which was followed by a 20.08% drop in the share price the next day.

Here's a look at Dave & Buster's Enter's past performance and the resulting price change:

Quarter	Q3 2024	Q2 2024	Q1 2024	Q4 2023
EPS Estimate	-0.36	0.84	1.70	1.10
EPS Actual	-0.45	1.12	1.12	1.03
Price Change %	-20.0%	5.0%	-11.0%	10.0%

Dave & Buster's Enter Share Price Analysis

Shares of Dave & Buster's Enter were trading at $17.0 as of April 03. Over the last 52-week period, shares are down 73.7%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Dave & Buster's Enter

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Dave & Buster's Enter.

The consensus rating for Dave & Buster's Enter is Neutral, derived from 2 analyst ratings. An average one-year price target of $24.0 implies a potential 41.18% upside.

Comparing Ratings Among Industry Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of RCI Hospitality Hldgs, Six Flags Entertainment and Vail Resorts, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for RCI Hospitality Hldgs, with an average 1-year price target of $98.0, indicating a potential 476.47% upside.
• Analysts currently favor an Buy trajectory for Six Flags Entertainment, with an average 1-year price target of $50.5, suggesting a potential 197.06% upside.
• The consensus among analysts is an Underperform trajectory for Vail Resorts, with an average 1-year price target of $177.17, indicating a potential 942.18% upside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for RCI Hospitality Hldgs, Six Flags Entertainment and Vail Resorts are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Dave & Buster's Enter	Neutral	-2.98%	$385.20M	-12.80%
RCI Hospitality Hldgs	Buy	-3.28%	$41.44M	3.39%
Six Flags Entertainment	Buy	85.20%	$629.51M	-12.06%
Vail Resorts	Underperform	5.50%	$571.87M	50.38%

Key Takeaway:

Dave & Buster's Enter ranks at the bottom for Revenue Growth and Gross Profit, indicating weaker performance in these areas compared to its peers. However, it is in the middle for Return on Equity, suggesting average profitability relative to others. Overall, there is room for improvement in revenue generation and gross profit margins to align with industry peers.

Get to Know Dave & Buster's Enter Better

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. Each store offers a full menu of entries and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. It derives maximum revenue from Entertainment.

Breaking Down Dave & Buster's Enter's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Dave & Buster's Enter's financials over 3 months reveals challenges. As of 31 October, 2024, the company experienced a decline of approximately -2.98% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -7.22%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Dave & Buster's Enter's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -12.8%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Dave & Buster's Enter's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.84%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 13.76, caution is advised due to increased financial risk.

To track all earnings releases for Dave & Buster's Enter visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.