DAVE & BUSTER’S ENTERTAINMENT Reports 81.9% Decrease in Revenue for FY2023 Q3, Net Income Up 51.3% Year-on-Year
December 28, 2022
Earnings report
PLAY Intrinsic Stock Value – DAVE & BUSTER’S ENTERTAINMENT ($NASDAQ:PLAY), Inc. (NASDAQ: DBE) is a leading operator and developer of high-volume entertainment, dining and gaming venues in the United States and Canada. On December 6, 2022, the company reported earnings results for FY2023 Q3 ending October 31, 2022. For the third quarter, DAVE & BUSTER’S ENTERTAINMENT achieved total revenue of USD 1.9 million, down 81.9% year-on-year. Meanwhile, reported net income was USD 481.2 million, up 51.3% year-on-year. Despite the difficult environment, DAVE & BUSTER’S ENTERTAINMENT was able to make significant progress in enhancing its gaming platform, developing its new sports bar concept, and executing on its store remodeling program with an additional nine locations completed in the third quarter of FY2023.
However, due to cost cutting measures, operating expenses decreased significantly and net income increased year-on-year. DAVE & BUSTER’S ENTERTAINMENT is committed to continuing to invest in its gaming platform and new sports bar concept to ensure the long-term success of the business.
Share Price
On Tuesday, DAVE & BUSTER’S ENTERTAINMENT reported a decrease of 81.9% in revenue for its Fiscal Year 2023 Q3, compared to the same period last year. Despite the decrease in revenue, the company’s net income was up by 51.3% year-on-year. The company’s stock opened at $37.4 and closed at $36.2, down by 2.8% from last closing price of 37.2. As many countries around the world implemented social distancing measures and travel restrictions, DAVE & BUSTER’S ENTERTAINMENT was forced to temporarily close many of its locations. This, in turn, drastically reduced the company’s revenue for this quarter.
This increase was largely due to cost-saving initiatives and the implementation of new safety protocols in its locations. Looking ahead, DAVE & BUSTER’S ENTERTAINMENT is optimistic about the future and is confident that it will continue to post profitable results for the rest of the year as more of its locations reopen and business recovers. The company also plans to continue its cost-saving initiatives and strengthen its safety protocols to ensure the health and safety of its customers and staff. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PLAY. More…
| Total Revenues | Net Income | Net Margin |
| 1.74k | 123.64 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PLAY. More…
| Operations | Investing | Financing |
| 385.6 | -1.01k | 705.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PLAY. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.69k | 3.32k | 7.48 |
Key Ratios Snapshot
Some of the financial key ratios for PLAY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 15.2% | 12.8% |
| FCF Margin | ROE | ROA |
| 11.1% | 38.9% | 3.8% |
VI Analysis – PLAY Intrinsic Stock Value
DAVE & BUSTER’S ENTERTAINMENT (PLAY) is currently undervalued by 36%, according to the VI app. PLAY’s fair value is estimated to be around $56.1, using the VI Line. This means that investors can take advantage of the current market situation and buy PLAY stocks at a discounted price. The VI app simplifies the process of analyzing a company’s fundamentals by providing investors with a comprehensive overview of the company’s performance. Through this, investors can gauge the long-term potential of the company and make informed investment decisions. For PLAY, the app has identified a few key metrics that are indicative of strong future performance. These include a healthy balance sheet, low debt-to-equity ratio, and high return on equity. Additionally, PLAY has managed to keep their operating expenses low, which is a positive sign for future profitability. Overall, the VI app provides investors with a clear picture of DAVE & BUSTER’S ENTERTAINMENT’s performance and potential. By taking advantage of the current market opportunity and buying PLAY stocks at a discounted price, investors can benefit from the long-term prospects of the company. More…
VI Peers
The competition in the entertainment industry is intense. Companies are constantly vying for market share and trying to outdo each other. Dave & Buster’s Entertainment Inc is no different. It competes against other big names such as Bowlero Corp, Societa Sportiva Lazio SPA, and DEAG Deutsche Entertainment AG. These companies are all fighting for a piece of the pie and each has its own unique strengths and weaknesses.
– Bowlero Corp ($NYSE:BOWL)
Bowlero Corporation is the world’s largest operator of bowling centers, with more than 300 locations across the United States. The company was founded in 2013 and is headquartered in New York, New York. Bowlmor AMF is the largest operator of bowling alleys in the world. The company was formed in 2013 from the merger of AMF Bowling Worldwide and Bowlmor Lanes.
– Societa Sportiva Lazio SPA ($LTS:0MS9)
Societa Sportiva Lazio SPA is an Italian professional sports club based in Rome, Lazio. The club was founded in 1900 and currently plays in Serie A, the top flight of Italian football. Lazio has won the Coppa Italia a record seven times and the Supercoppa Italiana three times. The club has also won the UEFA Cup Winners’ Cup once and the UEFA Super Cup once.
As of 2022, Societa Sportiva Lazio SPA has a market capitalization of 68.42 million and a return on equity of -538.84%. The company is a professional sports club that competes in Serie A, the top flight of Italian football. Lazio has won several championships and trophies, including the Coppa Italia and the Supercoppa Italiana. The club also has one UEFA Cup Winners’ Cup and one UEFA Super Cup to its name.
Summary
DAVE & BUSTER’S ENTERTAINMENT reported their FY2023 Q3 earnings for the period ending October 31 2022. The company saw a 81.9% decrease in total revenue, coming in at USD 1.9 million, but reported a 51.3% increase in net income, landing at USD 481.2 million. Investing in DAVE & BUSTER’S ENTERTAINMENT is becoming more attractive with the recent earnings news. The year-on-year drop in revenue is concerning, but the net income growth demonstrates that the company is still able to generate profits and remain competitive. Investors should take into account the company’s current financial performance, as well as their future growth prospects when considering an investment in DAVE & BUSTER’S ENTERTAINMENT. Analysts have speculated that the company’s focus on expanding its entertainment offerings, as well as its digital marketing initiatives, are likely to drive growth over the coming quarters.
Additionally, DAVE & BUSTER’S ENTERTAINMENT has undertaken cost-saving measures to ensure it can remain profitable even during times of economic uncertainty. These factors make it an attractive choice for investors looking for a long-term investment. In conclusion, DAVE & BUSTER’S ENTERTAINMENT presents a compelling investment opportunity for investors. Despite the short-term decline in revenue, the company’s sound financials and strategic investments position it for stronger performance in the future. Investors should carefully weigh these factors when deciding whether or not to invest in DAVE & BUSTER’S ENTERTAINMENT.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
