Arcade company Dave & Buster’s (NASDAQ: PLAY) will be announcing earnings results this Monday afternoon. Here’s what to expect.

Dave & Buster's missed analysts’ revenue expectations last quarter, reporting revenues of $559.2 million, down 1.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a significant miss of analysts’ same-store sales estimates.

Is Dave & Buster's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Dave & Buster’s revenue to be flat year on year, in line with its flat revenue from the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.

Looking at Dave & Buster’s peers in the consumer discretionary - leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sphere Entertainment delivered year-on-year revenue growth of 11%, beating analysts’ expectations by 1.8%, and Live Nation reported revenues up 9.4%, topping estimates by 1.4%. Sphere Entertainment traded up 2.2% following the results while Live Nation was down 5.1%.

Read our full analysis of Sphere Entertainment’s results here and Live Nation’s results here.

Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer discretionary - leisure facilities stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.9% on average over the last month. Dave & Buster's is down 19.5% during the same time and is heading into earnings with an average analyst price target of $18.88 (compared to the current share price of $8.17).

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