Entertainment and dining venues operator Dave & Buster (PLAY) reported impressive third-quarter results. However, the company is expected to face headwinds related to the resurgence of COVID-19 cases and high input costs. So, let’s discuss if it is wise to buy the stock now. Read on.Dallas, tex.-based Dave & Buster's Entertainment, Inc. (PLAY) reported strong third-quarter earnings on December 8. While its $317.98 million in revenue for the quarter missed the consensus estimate by 0.6%, its $0.21 in adjusted earnings per share beat estimates by 62.8%. Also, its board of directors recently authorized a $100 million share repurchase program. However, the company stated that its fourth-quarter revenues would be affected by its weak Special Events business relative to 2019 and a calendar shift in its significant holiday periods.
PLAY recently witnessed a decline in hedge fund sentiment. And the stock has lost 10.1% in price over the past month and 24.4% over the past nine months to close yesterday’s trading session at $34.37. PLAY is currently trading 33.6% below its 52-week high of $51.73, which it hit on March 26, 2021.
Furthermore, the COVID-19 omicron variant, labor and supply shortages, and rising input costs make its near-term prospects look uncertain.