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Dave & Buster's (PLAY) Q1 Earnings Top Estimates, Stock Up
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Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported first-quarter fiscal 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year. Following the announcement, shares of the company gained 2.1% in the after-hours trading session on Jun 7.
Dave & Buster’s board chair and interim CEO, Kevin Sheehan, said, “We set records for revenue, net income and Adjusted EBITDA in the first quarter indicating a return to a normalized operating environment. I am so proud of our teams as they have enthusiastically welcomed back guests to our stores. We are excited about the trajectory of our business and particularly the next few months as we begin our “Summer of Games” roll-out that we hope will drive even more visitation to our stores.”
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share of $1.35, which beat the Zacks Consensus Estimate of $1.16. In the year-ago quarter, it had reported adjusted earnings per share of 40 cents.
Quarterly revenues of $451.1 million surpassed the consensus mark of $441 million. In the prior-year quarter, the company reported revenues of $265.3 million. Revenues jumped 24.1% compared with first-quarter fiscal 2019.
Food and Beverage revenues (33.7% of total revenues in the fiscal first quarter) soared 77.1% year over year to $151.9 million. Amusement and Other revenues (66.3%) surged 66.6% year over year to $299.2 million.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
During the fiscal first quarter, comparable store sales increased 10.9% compared with the 2019 level. Meanwhile, non-comparable store revenues in the reported quarter were $89.2 million, up from $58.5 million in the year-ago quarter.
Operating Highlights
During the fiscal first quarter, operating income amounted to $98.7 million compared with $37 million in the prior-year quarter. Operating margin was 21.9% compared with 14% reported in the prior-year quarter. During the quarter, adjusted EBITDA was $143.2 million, up 86.8% year over year.
Balance Sheet
As of May 1, 2022, cash and cash equivalents totaled $139.1 million compared with $25.9 million in the prior-year quarter.
At the end of the fiscal first quarter, net long-term debt totaled $432 million compared with $431.4 million at the end of fourth-quarter 2021.
Fiscal Q2 Business Update & Outlook
During the first five weeks of second-quarter fiscal 2022, the company’s comps rose 12.2% from the 2019 level. Walk-in comparable store sales rose 17.8%, while Special Event comparable store sales slumped 27.9% for the five-week period compared with 2019.
Some better-ranked stocks in the Zacks Retail-Wholesale sector are MarineMax, Inc. (HZO - Free Report) , BBQ Holdings, Inc. and Arcos Dorados Holdings Inc. (ARCO - Free Report) .
MarineMax sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 32.8%, on average. Shares of the company have declined 12.1% in the past year.
The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 16% and 21.5%, respectively, from the year-ago period’s levels.
BBQ Holdings carries a Zacks Rank #2 (Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have decreased 19% in the past year.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2. ARCO has a long-term earnings growth of 34.4%. Shares of the company have increased 18.6% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 83.3%, respectively, from the year-ago period’s levels.
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Dave & Buster's (PLAY) Q1 Earnings Top Estimates, Stock Up
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported first-quarter fiscal 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year. Following the announcement, shares of the company gained 2.1% in the after-hours trading session on Jun 7.
Dave & Buster’s board chair and interim CEO, Kevin Sheehan, said, “We set records for revenue, net income and Adjusted EBITDA in the first quarter indicating a return to a normalized operating environment. I am so proud of our teams as they have enthusiastically welcomed back guests to our stores. We are excited about the trajectory of our business and particularly the next few months as we begin our “Summer of Games” roll-out that we hope will drive even more visitation to our stores.”
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share of $1.35, which beat the Zacks Consensus Estimate of $1.16. In the year-ago quarter, it had reported adjusted earnings per share of 40 cents.
Quarterly revenues of $451.1 million surpassed the consensus mark of $441 million. In the prior-year quarter, the company reported revenues of $265.3 million. Revenues jumped 24.1% compared with first-quarter fiscal 2019.
Food and Beverage revenues (33.7% of total revenues in the fiscal first quarter) soared 77.1% year over year to $151.9 million. Amusement and Other revenues (66.3%) surged 66.6% year over year to $299.2 million.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Buster's Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Buster's Entertainment, Inc. Quote
Comps Details
During the fiscal first quarter, comparable store sales increased 10.9% compared with the 2019 level. Meanwhile, non-comparable store revenues in the reported quarter were $89.2 million, up from $58.5 million in the year-ago quarter.
Operating Highlights
During the fiscal first quarter, operating income amounted to $98.7 million compared with $37 million in the prior-year quarter. Operating margin was 21.9% compared with 14% reported in the prior-year quarter. During the quarter, adjusted EBITDA was $143.2 million, up 86.8% year over year.
Balance Sheet
As of May 1, 2022, cash and cash equivalents totaled $139.1 million compared with $25.9 million in the prior-year quarter.
At the end of the fiscal first quarter, net long-term debt totaled $432 million compared with $431.4 million at the end of fourth-quarter 2021.
Fiscal Q2 Business Update & Outlook
During the first five weeks of second-quarter fiscal 2022, the company’s comps rose 12.2% from the 2019 level. Walk-in comparable store sales rose 17.8%, while Special Event comparable store sales slumped 27.9% for the five-week period compared with 2019.
Dave & Buster's carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector are MarineMax, Inc. (HZO - Free Report) , BBQ Holdings, Inc. and Arcos Dorados Holdings Inc. (ARCO - Free Report) .
MarineMax sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 32.8%, on average. Shares of the company have declined 12.1% in the past year.
The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 16% and 21.5%, respectively, from the year-ago period’s levels.
BBQ Holdings carries a Zacks Rank #2 (Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have decreased 19% in the past year.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2. ARCO has a long-term earnings growth of 34.4%. Shares of the company have increased 18.6% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 83.3%, respectively, from the year-ago period’s levels.