Zacks Research Issues Negative Outlook for PLAY Earnings

Key Points

• Zacks Research lowered its earnings forecasts for Dave & Buster’s, projecting a Q3 2027 loss of $1.42 per share and full-year 2027 and 2028 losses of $1.57 and $1.49, respectively. Zacks maintains a “Strong Sell” rating.
• PLAY’s latest quarter missed expectations, with a $0.27-per-share loss versus expectations for a $0.19 profit, while revenue fell 2.4% year over year to $544.1 million. The stock opened at $6.49, near its $6.38 one-year low, amid significant leverage and weak profitability.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with a $17.33 target price, while UBS and BMO recently cut their price targets. On the positive side, two company insiders purchased shares, including the CFO’s 4,000-share buy at $6.50.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Free Report) - Stock analysts at Zacks Research dropped their Q3 2027 earnings per share estimates for shares of Dave & Buster's Entertainment in a research report issued on Monday, September 28th. Zacks Research analyst Team now forecasts that the restaurant operator will post earnings per share of ($1.42) for the quarter, down from their prior forecast of ($1.40). Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Dave & Buster's Entertainment's current full-year earnings is ($1.39) per share. Zacks Research also issued estimates for Dave & Buster's Entertainment's Q4 2027 earnings at ($0.10) EPS, FY2027 earnings at ($1.57) EPS, Q2 2028 earnings at ($0.05) EPS, Q3 2028 earnings at ($1.45) EPS, Q4 2028 earnings at ($0.21) EPS, FY2028 earnings at ($1.49) EPS, Q1 2029 earnings at $0.56 EPS, Q2 2029 earnings at ($0.15) EPS and FY2029 earnings at ($0.83) EPS.

Several other analysts have also commented on PLAY. Citigroup reaffirmed a "market perform" rating on shares of Dave & Buster's Entertainment in a research report on Tuesday, September 15th. Weiss Ratings reiterated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research report on Friday, July 17th. UBS Group cut their target price on Dave & Buster's Entertainment from $12.00 to $9.00 and set a "neutral" rating for the company in a research note on Tuesday, September 15th. Citizens Jmp began coverage on Dave & Buster's Entertainment in a research report on Monday, June 29th. They issued a "market perform" rating on the stock. Finally, BMO Capital Markets dropped their price target on shares of Dave & Buster's Entertainment from $22.00 to $13.00 and set an "outperform" rating for the company in a research report on Tuesday, September 15th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Dave & Buster's Entertainment has an average rating of "Hold" and a consensus target price of $17.33.

Dave & Buster's Entertainment Stock Performance

NASDAQ:PLAY opened at $6.49 on Wednesday. The company has a debt-to-equity ratio of 17.07, a current ratio of 0.30 and a quick ratio of 0.21. The firm has a market capitalization of $226.05 million, a price-to-earnings ratio of -2.53 and a beta of 1.82. The company's 50-day moving average is $9.09 and its two-hundred day moving average is $10.79. Dave & Buster's Entertainment has a 1-year low of $6.38 and a 1-year high of $22.10.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $544.10 million for the quarter, compared to analyst estimates of $556.83 million. During the same quarter in the previous year, the business posted $0.32 earnings per share. Dave & Buster's Entertainment's revenue for the quarter was down 2.4% on a year-over-year basis.

Insider Buying and Selling at Dave & Buster's Entertainment

In other news, Director Nathaniel Lipman acquired 12,000 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was acquired at an average cost of $6.78 per share, with a total value of $81,360.00. Following the completion of the purchase, the director owned 30,715 shares of the company's stock, valued at $208,247.70. This represents a 64.12% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Cory Hatton acquired 4,000 shares of the business's stock in a transaction that occurred on Monday, September 28th. The stock was purchased at an average price of $6.50 per share, for a total transaction of $26,000.00. Following the acquisition, the chief financial officer directly owned 104,475 shares in the company, valued at approximately $679,087.50. This trade represents a 3.98% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 1.73% of the company's stock.

Institutional Trading of Dave & Buster's Entertainment

A number of large investors have recently modified their holdings of PLAY. Cibc World Market Inc. purchased a new stake in shares of Dave & Buster's Entertainment in the 2nd quarter valued at approximately $2,098,000. ING Groep NV purchased a new stake in shares of Dave & Buster's Entertainment during the 4th quarter worth $7,311,000. BlackRock Inc. purchased a new stake in shares of Dave & Buster's Entertainment during the 2nd quarter worth $36,725,000. Wolf Hill Capital Management LP acquired a new position in shares of Dave & Buster's Entertainment during the second quarter worth $15,468,694. Finally, Patient Capital Management LLC acquired a new position in shares of Dave & Buster's Entertainment during the second quarter worth $2,326,000. Hedge funds and other institutional investors own 91.45% of the company's stock.

Key Stories Impacting Dave & Buster's Entertainment

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 stake by approximately 4%. The insider purchase may signal management confidence that the stock has been oversold. Dave & Buster's Entertainment CFO Cory Hatton Purchases 4,000 Shares of Stock
• Neutral Sentiment: Zacks Research maintained a “Hold” rating, despite making numerous changes to its forecasts. It raised estimates for Q4 2027 EPS to a loss of $0.10 from $0.18 and Q1 2029 EPS to $0.56 from $0.36, but these improvements were outweighed by broader reductions.
• Negative Sentiment: Zacks cut its FY2027 EPS forecast to a loss of $1.57 from $1.18 and reduced FY2028 EPS to a loss of $1.49 from $1.09. It also lowered estimates for Q2 2028, Q3 2028, Q4 2028, Q2 2029 and FY2029, suggesting analysts expect prolonged earnings weakness. Zacks Research Has Pessimistic Opinion of PLAY Q1 Earnings
• Negative Sentiment: Moody’s cut its outlook on Dave & Buster’s to negative, citing a sales slump. The action adds credit-risk concerns for a company with a debt-to-equity ratio above 17 and could weigh on investor confidence. Moody’s cuts Dave & Buster’s outlook to negative on sales slump
• Negative Sentiment: The company’s latest reported quarter included an EPS loss of $0.27 versus expectations for $0.19 of profit, while revenue declined 2.4% year over year and missed estimates. The results reinforce concerns about the turnaround and help explain the stock’s sharp decline from its one-year high.

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.

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