Ask Matt: Is Dave & Buster’s worth a shot?

Q: Is Dave & Buster’s worth a shot?

A: Dave & Buster’s (PLAY) operates entertainment centers where adults and families can play games and watch sports. It’s giving investors a pretty good time, too.

Shares are up nearly 40% over the past 12 months and have risen 11% just this year alone. Investors had new reason to celebrate Wednesday after the company late Tuesday posted adjusted quarterly profit of 72 cents a share - beating expectations by 20%, says S&P Global Market Intelligence. Shares jumped Wednesday by $4.29, or 10.3%, to $46.15 in response. The robust quarter lead the company to tell investors revenue this fiscal year could hit upwards of $995 million - topping the $991.9 million expected. Things look alluring for Dave & Buster’s now. Adjusted profit in the first quarter jumped 56% versus the same period a year ago as revenue rose 18% to $262 million. Analysts are also very bullish on the stock, rating it a “buy” and saying it will be worth $50.40 a share in 18 months. That would be 9% implied upside from Wednesday’s price. Adjusted profit is seen rising 30% this year. But with a market premium valuation of 33 times, investors must remain cautious if this concept cools off like it - and its competitors have - in the past.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.