Dave & Buster’s Entertainment, Inc. PLAY posted better-than-expected first-quarter fiscal 2017 results wherein both the bottom line and the top line beat the Zacks Consensus Estimate.
However, the company’s shares declined nearly 3% in afterhours trading on Jun 6, mirroring investor concerns surrounding the decelerating comps growth rate.
Earnings & Revenues
Dave & Buster’s adjusted earnings of 87 cents per share for the fiscal first quarter beat the Zacks Consensus Estimate of 81 cents by 7.4%. Earnings also increased 20.8% from the year-ago figure of 72 cents on higher revenues.
The company reported revenues of $304.1 million in the quarter, surpassing the Zacks Consensus Estimate of $299.6 million by 1.5%. Moreover, revenues improved 16.1% year over year primarily owing to consistent unit expansion..
Turning to category sales, during the quarter, Food and Beverage revenues went up 10.8% year over year to $129.8 million while Amusement and Other revenues surged 20.3% to $174.3 million.
Behind the Headline Numbers
Comparable store sales (comps) increased 2.2% year over year in the quarter, driven by a 2.4% rise in walk-in sales and a 0.6% improvement in special events sales. However, the figure was lower than the 3.6% growth recorded in the prior-year quarter as well as last quarter’s 3.2% increase.
Adjusted earnings before interest, taxes, and amortization (EBITDA) surged 25% to $95.6 million. Adjusted EBITDA margins increased 220 bps to 31.4% from 29.2% in the year-ago quarter.
Fiscal 2017 Outlook
Dave & Buster’s has increased the lower end of the previous projection and now expects fiscal 2017 revenues in the range of $1.160 billion to $1.170 billion (previously $1.155–$1.170 billion).
Comps are still anticipated to witness an increase in the range of 2% to 3% on a comparable 52-week basis.
The company expects to open 12 new stores in fiscal 2017 (earlier 11 to 12 openings were anticipated).
Dave & Buster’s has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dave & Buster’s Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Buster’s Entertainment, Inc. Price, Consensus and EPS Surprise | Dave & Buster’s Entertainment, Inc. Quote
Peer Releases
Red Robin Gourmet Burgers Inc. RRGB reported first-quarter 2017 adjusted earnings per share of 89 cents beating the Zacks Consensus Estimate of 58 cents by 53.4%. However, earnings declined 29.9% year over year, owing to lower comps and margins.
In first-quarter 2017, BJ’s Restaurants, Inc. BJRI posted earnings of 42 cents per share that surpassed the Zacks Consensus Estimate of 34 cents by 23.5%. However, earnings decreased 10.6% year over year mainly due to lower margins.
Darden Restaurants, Inc.’s DRI third-quarter fiscal 2017 adjusted earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.27 by 3.9%. Further, the bottom line surged 9.1% year over year on the back of higher revenues and a lower share count.
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Zacks Investment Research
June 07, 2017 at 07:48PM
from Zacks Equity Research
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