Shares of Dave & Buster's (PLAY 54.48, +6.65, +13.90%) jumped in
pre-market to open up 16% after the entertainment company reported better than
expected quarterly results.
The arcade operator reported above-consensus first quarter earnings of $1.04/share on a 9.2% year/year increase in revenue to $332.2 mln, which was also ahead of market expectations.
On a comparable week basis, revenue grew 9.7% year/year. Dave & Buster's opened six new stores during the quarter, up from six stores opened during the same quarter one year ago.
Walk-in sales declined 4.8% year/year while special event sales fell 6.4%. Comparable sales in Amusements & Other fell 4.0% while Food & Beverage comparable sales fell 6.1%. Non-comparable store revenue grew 146.1% year/year to $74.5 mln.
Chief Executive Officer Steve King reiterated plans to strengthen the overall customer experience. The company plans to launch its proprietary virtual reality platform and will begin offering new burgers later in the year.
The company has another $81.8 mln remaining under its current authorization to buy back $300 mln worth of shares.
Looking ahead, the company reaffirmed its guidance for the fiscal year, expecting revenue between $1.20 bln and $1.24 bln. Comparable store sales are expected to decrease in the low-to-mid single digits. The company plans to open 14 or 15 new locations during the fiscal year. Net income is expected between $95 mln and $110 mln. Capital additions are expected between $179 mln to $189 mln.
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