Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) stock rose 5.9% on 14th September, 2018 (As of 11:29 AM GMT-4 ·; Source: Google finance) after the company posted better than expected results for the second quarter 2018.
PLAY in the second quarter of FY 18 has reported the adjusted earnings per share of 84 cents, beating the analysts’ estimates for the adjusted earnings per share of 67 cents. The company had reported the adjusted revenue growth of 13.7 percent to $319.2 million in the second quarter of FY 18, beating the analysts’ estimates for revenue of $315.25 billion. Across all stores, Food and Beverage revenues increased 9.7% to $130.2 million from $118.7 million and Amusement and Other revenues increased 16.6% to $188.9 million from $162.1 million. Operating income increased to $45.9 million in the second quarter of 2018 from $39.2 million in last year’s second quarter.
Same-store sales fell 2.4%, versus the FactSet estimate was for a 2.6% decline. The comparable store sales decline was driven by a 2.6% decrease in walk-in sales and a 0.1% increase in special events sales. Comparable store sales in Amusements & Other decreased 1.2% and in Food & Beverage decreased 4.1%. Non-comparable store revenues increased $39.3 million, or 99.6% in the second quarter 2018 to $78.8 million, also on a comparable week basis.
PLAY has declared a quarterly cash dividend of $0.15 per common share, payable on October 10, 2018 to shareholders of record on September 25, 2018. The company has increased the total share repurchase authorization to $100 million and extended the share repurchase program through the end of fiscal 2020. During the second quarter of 2018, the company has repurchased approximately 729,000 shares for $33.7 million, with an additional 212,000 shares for $11.3 million through September 11, 2018 during the third quarter. As of the same date, cumulatively, PLAY had repurchased 4.8 million shares for $253.1 million. Including the additional authorization, the company now have approximately $146.9 million available for share repurchases.
For FY 2019, Dave & Buster’s is expecting revenue to be in the range of $1.230 billion to $1.255 billion, up from $1.20 billion to $1.24 billion previously. Same-store sales are expected to fall in the low-single digits compared with previous guidance for a low-to-mid-single-digit decrease. And net income is expected to be $101 million to $111 million, compared with previous guidance of $95 million to $110 million. The FactSet consensus is for revenue of $1.62 billion, a same-store sales decline of 1.5%, and net income of $143 million.