Dave & Buster’s Sink 17% After Q1 Revenues Miss Street, Cuts FY Outlook
Shares of Dave & Buster’s Entertainment Inc. (PLAY) tanked 17% on extended trading session Tuesday after the retailer reported a first-quarter revenues that fell short of estimates and lowered its full-year outlook.
Dallas, Texas-based Dave & Buster’s first-quarter profit was $42.4 million or $1.13 per share, compared with last year’s profit of $42.2 million or $1.04 per share last year. On average, 11 analysts polled by Thomson Reuters estimate earnings of $1.12 per share for the quarter.
Total revenues for the quarter grew 9.5% to $363.6 million from $332.2 million last year. Analysts had a consensus revenue estimate of $371.0 million for the quarter.
Comparable store sales for the quarter decreased 0.3% and the company opened seven new stores.
“We delivered robust revenue and EPS growth and our new store performance remained strong, but comparable store sales were below expectations largely due to the Easter shift, which proved unfavorable this year. We are fully committed to executing on our four strategic priorities to strengthen the brand and remain focused on creating significant shareholder value over the long term,” said CEO Brian Jenkins.
Looking forward to the full year 2019, the company now expects revenues of $1.365 billion to $1.390 billion. Previously, revenues were expected to be $1.370 billion to $1.400 billion. Analysts currently estimate revenues of $1.40 billion for the year.
PLAY closed Tuesday’s trading at $51.53, up $0.96 or 1.90%, on the Nasdaq. The stock, however, dropped $8.92 or 17.31%, in the after-hours trade.
Source: Read Full Article