PLAY Stock Fair Value – Dave & Buster’s Beats Earnings Estimate, Misses Revenue Forecast
December 7, 2023
🌧️Trending News
Dave ($NASDAQ:PLAY) & Buster’s Entertainment has been a leader in the entertainment industry for many years. Recently, the company released their financial results for the first quarter of 2021, which showed a positive earnings beat as well as a revenue miss. Dave & Buster’s Non-GAAP EPS of $0.01 exceeded analysts’ expectations by $0.13, however revenue of $466.9M fell short of the expected amount by $6.49M. The company attributed the revenue shortfall to an earlier Easter holiday, which affected the timing of some promotions and caused the costs associated with those promotions to come earlier in the year. Dave & Buster’s also saw increased costs due to higher labor and other operating costs, which ate into their profits for the quarter.
Overall, however, the company was able to beat earnings expectations and maintain a positive outlook for the future. Dave & Buster’s enjoys a unique position in the entertainment industry, offering guests an immersive experience through its restaurants and arcades. With its strong management team and financial performance, Dave & Buster’s remains a well-positioned player in the entertainment industry.
Earnings
In its earning report of FY2024 Q2 as of July 31 2021, DAVE & BUSTER’S ENTERTAINMENT reported total revenue of 377.64M USD, showing a 19.4% decrease compared to the previous year. Net income rose 81.4% to 52.77M USD in the same period. DAVE & BUSTER’S ENTERTAINMENT’s total revenue has increased from 377.64M USD to 542.1M USD in the last three years. Despite not meeting its revenue forecast, DAVE & BUSTER’S ENTERTAINMENT managed to beat the earnings estimates for the quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PLAY. More…
| Total Revenues | Net Income | Net Margin |
| 2.17k | 129.94 | 6.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PLAY. More…
| Operations | Investing | Financing |
| 410.47 | -276.89 | -177.79 |
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 |
| 3.7k | 3.49k | 4.93 |
Key Ratios Snapshot
Some of the financial key ratios for PLAY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 48.2% | 21.0% | 12.7% |
| FCF Margin | ROE | ROA |
| 6.1% | 65.4% | 4.7% |
Stock Price
On Tuesday, DAVE & BUSTER’S ENTERTAINMENT stock opened at $42.4 and closed at $41.9, down 1.8% from its previous closing price of 42.7. This was a result of lower in-store sales due to the ongoing pandemic and the closure of certain stores. Live Quote…
Analysis – PLAY Stock Fair Value
At GoodWhale, we analyzed the fundamentals of DAVE & BUSTER’S ENTERTAINMENT and found it to be undervalued. Using our proprietary Valuation Line, we determined that the fair value of DAVE & BUSTER’S ENTERTAINMENT share is around $75.1. However, the stock is currently trading at $41.9, representing an undervaluation of 44.2%. This presents a great opportunity for investors looking to add this company to their portfolio at a discount. More…
Peers
The competition in the entertainment industry is intense. Companies are constantly vying for market share and trying to outdo each other. Dave & Buster’s Entertainment Inc is no different. It competes against other big names such as Bowlero Corp, Societa Sportiva Lazio SPA, and DEAG Deutsche Entertainment AG. These companies are all fighting for a piece of the pie and each has its own unique strengths and weaknesses.
– Bowlero Corp ($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, Inc. recently released their non-GAAP earnings report for the quarter ending in March 2021, showing an earnings per share (EPS) of $0.01, beating analyst expectations by $0.13. Revenue for the quarter was $466.9 million, missing analyst estimates by $6.49 million. This result shows that although the EPS beat expectations, revenue was lower than expected. Investors may want to consider the current market conditions and the potential risks associated with investing in the company based on this quarter’s performance.
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