Market Overview

Dave & Buster's Falls After Cutting Guidance

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Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) shares are getting crushed after reporting a second-quarter beat after the close on Tuesday.

Second-quarter earnings came in at 90 cents per share, beating estimates by 6 cents. Sales acme in at $344.599 million, beating estimates by $309,000.

The company cut 2019 sales guidance from $1.365 billion-$1.390 billion to $1.34 billion-$1.36 billion and sees comps down 2%-3.5%.

"We continue to deliver strong revenue and earnings per share growth – including record second quarter sales, EBITDA and EPS – while investing for the future and returning substantial capital to shareholders through dividends and share repurchases," said CEO Brian Jenkins. "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."

Highlights

  • EBITDA increased 5.3%
  • Comparable store sales decreased 1.8%
  • Total revenues increased 8%
  • Number of stores increased 11.1%

Dave & Buster’s shares traded own 9.5% in Tuesday's after-hours session. The stock closed at $43.72 per share.

Posted-In: Brian JenkinsEarnings News Guidance After-Hours Center

 

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