Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) stock was falling hard today on a update to its 2017 outlook.
Dave & Buster’s Entertainment Inc says that its performance during the fourth quarter has been softer than expected. It first noted a slow start to the quarter in its third quarter earnings report, but was expecting sales to pick up during the holidays. This wasn’t the case.
Instead, Dave & Buster’s Entertainment Inc says that sales continued to decline. Sales since the start of the fourth quarter have been down 5%. As such, it is lowering its 2017 revenue outlook from between $1.148 billion and $1.155 billion to range from $1.138 billion to $1.142 billion. This is bad news for PLAY stock as Wall Street is looking for revenue of $1.15 billion for the year.
Dave & Buster’s Entertainment Inc is also lowering its net income outlook for 2017 in its recent update. The entertainment company is now expecting net income for the year to range from $108 million to $110 million. It was previously expecting net income to come in between $110 million and $112 million.
Dave & Buster’s Entertainment Inc notes that its fourth quarter of 2017 will come to an end on Feb. 4, 2018. The company is planning to release its earnings report for the quarter and the full year of 2017 in early April.
Despite the bad news for its 2017 outlook, Dave & Buster’s Entertainment Inc did try to slip some positives into the update. This includes strong year-over-year performance for more than half of its new stores opened in 2016. However, it wasn’t enough to blunt the damage done to PLAY stock today.
PLAY stock was down 18% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.