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Dec 11, 2019
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Dave and Busters( PLAY, $39.99) misses earnings, beats revenue estimates; boosts full-year adjusted EBITDA

Dave and Busters( PLAY, $39.99) misses earnings, beats revenue estimates; boosts full-year adjusted EBITDA

Dave and Busters missed earnings expectations, but its revenue exceeded estimates. The company also raised guidance for the full year 2019.

For the third quarter, the restaurant and entertainment company reported GAAP earnings of 2 cents a share, which is below analysts’ estimates of 3 cents. The figure is  also lower than the year-ago quarter’s 30 cents a share.

Revenue increased +6.1% year-over-year to $299.4 million, beating Wall Street estimates of $296 million. Store count increased +13%. 

Food and beverage revenue for the quarter came in at $124 million, beating estimates of $123 million. Entertainment revenue was $174 million, exceeding estimates of $173 million.

CEO Brian Jenkins indicated that the company’s strong new store performance, progress in advancing near-term priorities, and sustainable shareholder value are some of the key strengths.

Looking ahead, Dave and Busters boosted the mid range of its full year 2019 adjusted EBITDA to $277.5 million for the year, up from a previous forecast of $277 million. The mid-point of same-store-sales guidance was re-iterated at 2.75%, but the range was tightened to between 2.5% and 3% (compared to prior forecast of 2% and 3.5%). 

 

Related Ticker: PLAY

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


PLAY in upward trend: price rose above 50-day moving average on October 29, 2026

PLAY moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend. In 27 of 32 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 84%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PLAY's RSI Indicator exited the oversold zone, 33 of 46 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 72%.

The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on PLAY as a result. In 62 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.

The Moving Average Convergence Divergence (MACD) for PLAY just turned positive on October 01, 2026. Looking at past instances where PLAY's MACD turned positive, the stock continued to rise in 29 of 44 cases over the following month. The odds of a continued upward trend are 66%.

Following a +7.26% 3-day Advance, the price is estimated to grow further. Considering data from situations where PLAY advanced for three days, in 206 of 284 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

PLAY broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for PLAY entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Valuation Rating of 58 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.103) is normal, around the industry mean (12.945). P/E Ratio (-3.059) is within average values for comparable stocks, (38.756). PLAY's Projected Growth (PEG Ratio) (9.900) is very high in comparison to the industry average of (2.376). Dividend Yield (0.082) settles around the average of (0.044) among similar stocks. P/S Ratio (0.115) is also within normal values, averaging (2.932).

The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. PLAY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PLAY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.

Notable companies

The most notable companies in this group are Netflix Inc. (NASDAQ:NFLX), Walt Disney Company (The) (NYSE:DIS), Roku (NASDAQ:ROKU), Skydance Corporation (NYSE:SKYD), AMC Entertainment Holdings (NYSE:AMC), iQIYI (NASDAQ:IQ), HUYA (NYSE:HUYA).

Industry description

Movies/entertainment industry include companies that produce and distribute motion pictures, and companies that operate general entertainment facilities like amusement parks and bowling centers. Some companies in this industry also have professional sports franchises. Live Nation Entertainment, Inc., Liberty Media Corp. and Viacom Inc. are some of the biggest companies in this space.

Market Cap

The average market capitalization across the Movies/Entertainment Industry is 15.88B. The market cap for tickers in the group ranges from 293 to 258.5B. NFLX holds the highest valuation in this group at 258.5B. The lowest valued company is BLMZF at 293.

High and low price notable news

The average weekly price growth across all stocks in the Movies/Entertainment Industry was -1%. For the same Industry, the average monthly price growth was -8%, and the average quarterly price growth was -8%. MSGR experienced the highest price growth at 15%, while ZNB experienced the biggest fall at -23%.

Volume

The average weekly volume growth across all stocks in the Movies/Entertainment Industry was 14%. For the same stocks of the Industry, the average monthly volume growth was -14% and the average quarterly volume growth was -25%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 48
P/E Growth Rating: 53
Price Growth Rating: 57
SMR Rating: 83
Profit Risk Rating: 77
Seasonality Score: 20 (-100 ... +100)
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General Information

an operator of high volume entertainment and dining complexes

Industry MoviesEntertainment

Industry
Restaurants
Address
1221 Beltline Road
Phone
+1 214 357-9588
Employees
23610
Web
https://www.daveandbusters.com
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