The stock market recovered from an early dip Tuesday following Federal Reserve Chairwoman Janet Yellen’s public announcement that the central bank will “proceed cautiously” on raising interest rates. The S&P 500 pressed 0.9% higher, while the Dow Jones Industrial Average managed to finish ahead by 0.6%.
As we enter hump day trading, a few stocks look likely to be on the move thanks to quarterly earnings. Today, be on the lookout for Sonic Corporation (NASDAQ:SONC), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) and Verint Systems Inc. (NASDAQ:VRNT).
Sonic Corporation (SONC)
Better-than-expected second-quarter earnings helped Sonic shares move in the right direction after the bell Tuesday.
The fast-food chain posted its financial results for the period ended Feb. 29, reporting an adjusted profit of 18 cents per share on revenues of $133.2 million. These figures surpassed Wall Street projections of 16 cents a share on sales of $128 million.
Part of the restaurant chain’s success came from a strong quarter in its core menu items and limited-time offers in its most recent quarter.
Sonic also updated its outlook for the fiscal year ending in August, expecting EPS to surge 20% to 25% — the company previously projected an earnings increase of 16% to 20%.
SONC was set to open some 4% higher in Wednesday trading.
Dave & Buster’s Entertainment, Inc. (PLAY)
The eatin’-and-gamin’ chain’s latest quarterly earnings results also beat analysts expectations, though PLAY stock appeared to be ready to open Wednesday in the other direction.
Dave & Busters’ fourth-quarter profit was $23 million, or 53 cents a share, which was higher than the Thomson Reuters consensus estimate of 43 cents a share. Revenue was 13% higher compared to the year-ago period at $234.2 million.
The company’s morning slide could be attributed to its full-year projections. Dave & Busters expects sales at locations open for at least 1.5 years to rise 2% to 4% — significantly lower than the 8.9% reported in the most recent year.
On a more positive note, the chain expects sales for the current fiscal year to be in the range of $967 million to $987 million — in line with the Wall Street estimate of $976 million.
Verint Systems Inc. (VRNT)
Disappointing fourth-quarter results by Verint Systems had VRNT primed to plummet in Wednesday’s morning trading.
The analytics company posted adjusted Q4 EPS of 90 cents on revenue of $281.8 million, with both numbers felling well under Wall Street’s expectations of $1.16 per share on revenues of $318.5 million.
Verint also updated its full-year 2016 outlook, projecting earnings plus-or-minus 2% on last year’s $3.04 in EPS. The consensus estimate was for earnings of $3.54 a share.
The company did also announce its first-ever stock buyback program, at $150 million over the next two years, but that wasn’t enough to keep VRNT from diving 15% in Wednesday’s premarket trade.