Categories AlphaGraphs, Consumer, Earnings
Earnings: Dave & Buster’s Q2 profit beats; stock falls on weak guidance
Dave & Buster’s Entertainment (NASDAQ: PLAY), an operator of leisure and event venues, reported higher earnings and revenues for the second quarter of 2019. While the bottom-line topped the Street view, revenues came in line. The company’s stock dropped sharply during Tuesday’s extended trading session after it lowered the full-year guidance.

Net income dropped to $32.4 million in the second quarter from $33.8 million in the year-ago quarter. On a per-share basis, however, earnings rose to $0.90 from $0.84 and surpassed analysts’ forecast.
The Top Line
Total revenues advanced 8% annually to $344.6 million and matched Wall Street’s prediction. The top-line growth reflects a 9.4% increase in Amusements and Other revenue and a 5.9% rise in Food and Beverage revenue.
Meanwhile, comparable store sales decreased 1.8% during the three-month period. A 2% decline in walk-in sales was partially offset by a 0.1% rise n special events sales.
“We are executing on five near-term priorities to improve performance and capitalize on the growing consumer demand for our offerings. By realizing operational efficiencies and cost savings, we will fund investments to fuel comp sales growth going forward,” said Brian Jenkins, Chief Executive Officer.
Outlook Revision
Meanwhile, the management lowered its full-year 2019 revenues outlook to the range of $1.338 billion to $1.359 billion from the previous forecast in the $1.365-$1.390 billion range. Comparable store sales are now expected to be down between 3.5% and 2%, compared to the previous estimate range of down 1.5% to up 0.5%. Earnings guidance has been lowered to the range of $91 million to $100 million from the previous range of $103 million to $113 million.
The full-year EBITDA outlook has been slashed to $272-$282 million from the previous estimate of $283 million to $295 million. Dave & Buster’s plans to open 15-16 new store locations in fiscal 2019, representing a 12% unit growth.
Store Count
The total number of stores increased by 11.1% to 130 units during the July-quarter, when the company repurchased 3.4 million shares for about $137 million and paid a quarterly cash dividend of $0.15 per share.
Dave & Buster’s shares are yet to fully recover from the huge loss they suffered after the management issued dismal full-year guidance in June. The stock, which lost about 13% in the past six months, plunged 13% during Tuesday’s after-hours trading session.
Most Popular
V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results
Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew
Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results
Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter
McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings
Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings