Revenues increased 8.8% annually to $331.8 million in the fourth quarter, beating the estimates. There was a 2.9% increase in comparable store sales amid strong new store performance. In the third quarter, the company had posted a 13% revenue growth.
The positive results and upbeat guidance for fiscal 2019 sent the company’s stock higher in Tuesday’s extended trading session
Joe DeProspero, interim chief financial officer of Dave & Buster’s Entertainment, said, “We remain focused on driving shareholder value by continuing to invest in new store growth, executing on our share repurchase program, and paying a quarterly cash dividend .”
During the fourth quarter, Dave & Buster’s opened three new stores. It also repurchased 1.3 million shares for $63 million and paid a quarterly cash dividend of $0.15 per share. Meanwhile, the board of directors authorized to expand the share repurchase program by another $200 million.
The company said it expects full-year 2019 comparable store sales to be flat to up 1.5%. Total revenues are estimated to be in the range of $1.37 billion to $1.40 billion. The management is looking for net income between $105 million and $117 million for the year and EBITDA in the range of $285 million to $300 million.
Shares of Dave & Buster’s Entertainment closed Tuesday’s regular session higher and continued to gain in the after-hours. The stock has gained 21% in the past twelve months and 15% since the beginning of 2019.