Dave & Busters earnings (NASDAQ:PLAY) came in ahead of what analysts were calling for, but a comparable stores decline that was wider than Wall Street expected sent the company’s stock sinking late in the day.
On Tuesday afternoon, the Dallas, Texas-based restaurant company posted its third quarter results for its fiscal 2018, unveiling net income of $11.9 million, or 30 cents per share. The figure is below the $12.2 million it brought in during its year-ago quarter, but its per-share total is higher this quarter compared to the year-ago one when it brought in 29 cents per share.
Dave & Busters beat the Wall Street consensus estimate for earnings during the period as analysts were projecting earnings of 24 cents per share, according to data compiled by FactSet. The company’s revenue tallied up to $282.1 million, a 13% increase over the $278 million from the year-ago quarter.
The company’s comparable-store sales declined about 1.3% compared to its year-ago quarter, which was wider than the 0.7% drop that analysts were calling for in their consensus estimate.
For its fiscal 2018, Dave & Busters increased its revenue guidance to now be between $1.24 billion and $1.26 billion, while net income is slated to be in the range of $106 million and $113 million. The company’s previous outlook called for revenue in the range of $1.23 billion and $1.26 billion, as well as net income between $101 million to $111 million.
PLAY stock was down about 2.8% during regular trading hours as the company got ready to report for its latest quarter. Shares then plummeted more than 16.2% after the bell on Tuesday due in part to its decline in its comps.