Dave & Buster's Entertainment, Inc. (PLAY) Soars on Earnings Beat

Dave & Buster’s Entertainment, Inc. (PLAY) Soars on Earnings Beat

PLAY shares soared 9.6% after the bell Tuesday

By Karl Utermohlen, InvestorPlace Writer Dec 5, 2017, 5:28 pm EDT December 5, 2017

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) topped Wall Street’s expectations on its after-hours earnings report Tuesday.

The company posted earnings of 29 cents per share during its third quarter of the current fiscal year, topping analysts’ projections of 23 cents per share, according to Zacks Investment Research. Net income came in at $12.2 million, an increase from the $10.8 million in the year-ago quarter.

Revenue did not meet expectations for Dave & Buster’s as the company raked in $250 million, below the Wall Street consensus estimate of $255.38 million. The figure gained 9.3% year-over-year.

Comparable sales declined 1.3% compared to the year ago mark, and the company managed to open one new store during the third quarter. “While it is still early, we are also pleased with the results from our 2017 store openings, which reaffirms the concept’s broad based appeal,” CEO Steve King said in a statement.

The company also lowered its full-year expectations despite the earnings growth, as it now sees its revenue between $1.15 billion and $1.16 billion. The impact caused by hurricanes in the U.S. took a toll on Dave & Buster’s business, including the delay of a new opening in Puerto Rico..

“We continue to expect to open fourteen new stores this year, representing 15% unit growth. In addition, we are excited to announce a new smaller store format that expands our brand potential and extends our growth runway,” King added.

PLAY stock skyrocketed 9.6% after the bell Tuesday.

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