What To Expect From Dave & Buster’s Today

Signage is displayed in the middle of a air hockey table at a Dave & Buster\’s Entertainment Inc. … [+] location in Pelham, New York, U.S. on Friday, March 24, 2017. Dave & Buster\’s Entertainment Inc. is scheduled to release earnings figures on March 28. Photographer: Timothy Fadek/Bloomberg

© 2017 Bloomberg Finance LP

Dave & Buster\’s Entertainment Inc. is scheduled to report earnings after Tuesday’s close. In 2017, the stock just hit a record high of $73.48 and is currently trading near $34. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

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Earnings Preview:

The company is expected to report earnings of $0.12/share on $324.16 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.17/share. The Whisper number is the Street\’s unofficial view on earnings.

Charts and Data Courtesy of MarketSmith Inc.

Charts and Data Courtesy of MarketSmith Inc.

A Closer Look At The Fundamentals:

The company’s earnings took a hit after the March 2020 due to the Covid-19 lockdown. Since the lockdown ended, both sales and earnings have improved considerably. Earnings grew by triple digits over the past two quarters while sales grew by 643% and 66% in the last two quarters! If this trend continues, shareholders will be pleased. Going forward, analysts believe the company will earn $2.27/share in 2022 and $2.70/share in 2023. Remember, these are estimates and can easily change.

A Closer Look At The Technicals:

Technically, the stock enjoyed a big rally from from the March 2020 low and has spent the past 8-9 months building a new base to digest that move. The bulls want to defend support near $31 and then see the stock jump above $41-42 in the near future.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.