The company’s top line is expected to be benefited by higher comparable sales and an increase in customers count. Despite the bottom line likely to be hurt by higher costs and expenses, the earnings are predicted to exceed analysts’ expectations as it has a four-quarter history of beating consensus estimates.
Meanwhile, traders are concerned about the comparable store sales as the holiday season sales result will occur only in the fourth quarter. Investors are waiting for the company’s clinch on the quarterly dividend and the share repurchase issuances for the third quarter.
Dave & Buster’s Q2 results top estimates; stock hits new 52-week high
For the second quarter, the company reported an 11.2% rise in earnings helped by revenue increases across both segments. However, comparable store sales fell 2.4% as a 2.6% dip in walk-in sales outrun the 0.1% rise in special event sales. Comp sales declined 1.2% in Amusements & Other and 4.1% in Food & Beverage segments, respectively.
For the full year 2018, Dave & Buster’s expected total revenues in the range of $1.23 billion to $1.25 billion and comparable store sales to fall in the low single digits. Net income was predicted to be $101 million to $111 million. The company believed to be on track to open 14 to 15 new stores including, at the top end of the range, 11 large, two small and two 17K format stores, representing 13% to 14% unit growth.
Shares of Dave & Buster’s opened higher on Monday but changed the course at the early trading to the red territory. The stock has fallen over 4% in the year so far and over 8% in the past three months.