Dave & Buster’s Entertainment (PLAY), an operator of entertainment and dining venues, reported stronger than expected revenues and earnings for the fourth quarter. The positive results and upbeat guidance for fiscal 2019 sent the company’s stock higher in Tuesday’s extended trading session.
For the January quarter, The Dallas, Texas-based company reported a net profit of $29.4 million or $0.75 per share, lower than $35.6 million or $0.85 per share reported a year earlier. Excluding special items, adjusted earnings rose to $0.66 per share, which also surpassed the Wall Street forecast. EBITDA moved up 1.9% annually to $72.1 million.
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.