What is Zacks Research's Forecast for PLAY FY2027 Earnings?

Key Points

• Zacks Research raised its FY2027 EPS forecast for Dave & Buster’s Entertainment slightly to a loss of $1.56 per share from a $1.57 loss, but maintained a “Strong Sell” rating. The estimate remains below the company’s broader recovery prospects, with FY2028 and FY2029 also projected to show losses.
• Dave & Buster’s recently reported a $0.27-per-share quarterly loss, missing the $0.19 consensus estimate, while revenue fell 2.4% year over year to $544.1 million. Analysts have generally remained cautious, with the stock carrying a consensus “Hold” rating and a $17.33 price target.
• PLAY shares opened at $6.38, near their 52-week low of $6.37, amid weak profitability and high leverage. However, company insiders recently bought shares, including the CFO’s 4,000-share purchase at an average of $6.50.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Free Report) - Equities research analysts at Zacks Research upped their FY2027 earnings per share estimates for shares of Dave & Buster's Entertainment in a research report issued to clients and investors on Tuesday, September 29th. Zacks Research analyst Team now anticipates that the restaurant operator will post earnings of ($1.56) per share for the year, up from their previous forecast of ($1.57). Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Dave & Buster's Entertainment's current full-year earnings is ($1.59) per share. Zacks Research also issued estimates for Dave & Buster's Entertainment's Q2 2028 earnings at ($0.16) EPS, Q3 2028 earnings at ($1.22) EPS, FY2028 earnings at ($1.36) EPS, Q1 2029 earnings at $0.49 EPS, Q2 2029 earnings at ($0.19) EPS and FY2029 earnings at ($0.84) EPS.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last issued its quarterly earnings results on Monday, September 14th. The restaurant operator reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.46). Dave & Buster's Entertainment had a negative return on equity of 51.87% and a negative net margin of 4.26%.The business had revenue of $544.10 million for the quarter, compared to analyst estimates of $556.83 million. During the same period in the prior year, the company posted $0.32 EPS. The firm's revenue for the quarter was down 2.4% compared to the same quarter last year.

Other equities analysts have also recently issued research reports about the stock. UBS Group decreased their price target on shares of Dave & Buster's Entertainment from $12.00 to $9.00 and set a "neutral" rating for the company in a research report on Tuesday, September 15th. Citizens Jmp initiated coverage on Dave & Buster's Entertainment in a research report on Monday, June 29th. They set a "market perform" rating on the stock. Weiss Ratings reiterated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research note on Friday, July 17th. BMO Capital Markets decreased their target price on Dave & Buster's Entertainment from $22.00 to $13.00 and set an "outperform" rating for the company in a report on Tuesday, September 15th. Finally, Citigroup reissued a "market perform" rating on shares of Dave & Buster's Entertainment in a research note on Tuesday, September 15th. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Dave & Buster's Entertainment currently has an average rating of "Hold" and a consensus price target of $17.33.

Dave & Buster's Entertainment Price Performance

Shares of PLAY opened at $6.38 on Thursday. Dave & Buster's Entertainment has a fifty-two week low of $6.37 and a fifty-two week high of $22.10. The firm's 50 day moving average price is $9.01 and its 200 day moving average price is $10.74. The company has a market cap of $222.22 million, a P/E ratio of -2.48 and a beta of 1.82. The company has a quick ratio of 0.21, a current ratio of 0.30 and a debt-to-equity ratio of 17.07.

Insiders Place Their Bets

In other Dave & Buster's Entertainment news, Director Nathaniel Lipman bought 12,000 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The shares were purchased at an average price of $6.78 per share, with a total value of $81,360.00. Following the completion of the acquisition, the director directly owned 30,715 shares of the company's stock, valued at $208,247.70. This represents a 64.12% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Cory Hatton purchased 4,000 shares of the business's stock in a transaction on Monday, September 28th. The stock was acquired at an average price of $6.50 per share, for a total transaction of $26,000.00. Following the completion of the purchase, the chief financial officer owned 104,475 shares of the company's stock, valued at $679,087.50. This represents a 3.98% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 1.73% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Dave & Buster's Entertainment during the 2nd quarter worth $36,725,000. Wolf Hill Capital Management LP acquired a new position in Dave & Buster's Entertainment in the second quarter valued at $15,468,694. Arrowstreet Capital Limited Partnership grew its holdings in shares of Dave & Buster's Entertainment by 44.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,509,752 shares of the restaurant operator's stock worth $16,351,000 after purchasing an additional 468,174 shares during the last quarter. ING Groep NV purchased a new position in shares of Dave & Buster's Entertainment during the fourth quarter worth about $7,311,000. Finally, Healthcare of Ontario Pension Plan Trust Fund increased its position in shares of Dave & Buster's Entertainment by 40.1% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,515,000 shares of the restaurant operator's stock worth $24,558,000 after purchasing an additional 434,000 shares in the last quarter. 91.45% of the stock is owned by institutional investors and hedge funds.

Key Dave & Buster's Entertainment News

Here are the key news stories impacting Dave & Buster's Entertainment this week:

• Positive Sentiment: CFO Cory Hatton purchased 4,000 shares at an average price of $6.50, increasing his direct ownership by approximately 4%. The insider purchase may signal management confidence that the stock has been oversold. Dave & Buster's Insider Purchase
• Neutral Sentiment: Zacks Research raised its Q1 2029 EPS estimate to $0.56 from $0.36, but this improvement was outweighed by broader reductions to its forecasts and a continued “hold” or “strong sell” view.
• Negative Sentiment: Zacks cut estimates for FY2027 EPS to $(1.57) from $(1.18), FY2028 EPS to $(1.49) from $(1.09), and FY2029 EPS to $(0.83) from $(0.81). Estimates for several quarterly periods were also reduced, including Q2 2028, Q3 2028 and Q2 2029, reinforcing concerns about a slower recovery. Zacks Downgrade
• Negative Sentiment: Moody’s reportedly cut Dave & Buster’s outlook to negative because of a sales slump, adding pressure to the company’s credit profile and turnaround prospects. Moody’s Outlook Revision
• Negative Sentiment: The company’s latest reported quarter showed a $0.27 per-share loss, revenue below consensus and a 2.4% year-over-year revenue decline. Analysts currently expect a full-year loss of roughly $1.39 per share.

Dave & Buster's Entertainment Company Profile

Dave & Buster's Entertainment, Inc NASDAQ: PLAY is an entertainment and dining company that operates venues combining arcade games, sports viewing, food and beverages, and social experiences. Its Dave & Buster's locations are designed for adults and families and offer interactive games, prize redemption, casual dining, full-service bars, and space for group events and parties.

The company also operates Main Event, a family entertainment brand offering bowling, arcade games, laser tag, virtual reality attractions, and food and beverages.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.