Dave & Buster’s is set to report their earnings after the close on Wednesday, with the stock currently trading near $50 after hitting a record high of $73.48 in 2017. Analysts are expecting the company to report earnings of $1.56/share on $612.60 million in revenue, while the Street’s unofficial estimate, known as the Whisper number, is a gain of $1.58/share. The company has shown strong earnings growth over the last few years, with expectations for continued growth in the future.
Despite the positive earnings outlook, the stock is currently under pressure, trading 28% below its 52-week high and testing its longer-term 200 day moving average line. The stock is also below its 50 and 21 DMA lines, although a strong earnings report could potentially lead to a gap up and a rally back above these key moving average lines. The company, which owns and operates entertainment and dining venues in North America under the Dave & Buster’s and Main Event brand name, has shown resilience despite the challenges posed by the Covid-19 pandemic.
Looking ahead, analysts expect the company to continue its impressive earnings growth, with projected earnings of $3.14 a share in 2024, $4.04 in 2025, and $4.99 in 2026. This growth is particularly notable given the stock’s relatively low price to earnings ratio of only 16. Dave & Buster’s focuses on offering a menu of food and drinks as well as entertainment attractions such as games and live sports, appealing to both adults and families.
As investors await the earnings report, it is important to pay attention to how the stock reacts to the news. Stock market experts emphasize the importance of keeping losses small and not arguing with the market trends. Dave & Buster’s has been featured on FindLeadingStocks.com, a members-only stock market newsletter, inviting investors to take a free trial to learn how it can help with their investment decisions. Ultimately, the performance of the stock after the earnings report will provide insights into the company’s financial health and future prospects.
