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Dave & Buster's (PLAY) Stock Down Despite Q1 Earnings Beat
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Dave & Buster's Entertainment, Inc. (PLAY - Free Report) 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).
Red Robin Gourmet Burgers Inc. (RRGB - Free Report) 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 - Free Report) 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 - Free Report) 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.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
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Dave & Buster's (PLAY) Stock Down Despite Q1 Earnings Beat
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>