Dave & Buster’s Entertainment, Inc.(NASDAQ: PLAY) has reported the adjusted earnings per share of $0.63 in the fourth quarter 2016, while the adjusted revenue rose 15.4 percent to $270.2 million in the fourth quarter 2016. The fourth quarter comparable store sales grew 3.2% in the latest period. The stock lost over 3.6% in the pre-market session on March 29th, 2017 (Source: Google finance).
In the fourth quarter, Dave & Buster’s Entertainment has opened four stores in Toledo, Ohio; Silver Spring (Washington, D.C.), Maryland; Oakville (Toronto), Ontario; and Daly City (San Francisco), California for a total of eleven new stores for the year. The total capital additions (net of tenant improvement allowances and sale-leaseback proceeds) during fiscal year 2016 were $146 million and included development costs for store openings, six remodeling and related projects, new games and maintenance capital.
Moreover in the first quarter of fiscal year 2017, PLAY have already opened three stores in Carlsbad, California; Columbia, South Carolina; and Overland Park, Kansas. The company is having six stores under construction in Tucson, Arizona; New Orleans, Louisiana; Alpharetta, Georgia; Myrtle Beach, South Carolina; McAllen, Texas and Bayamon, Puerto Rico currently.
During FY 16, Dave & Buster’s Entertainment has approved a $100 million share repurchase program. Under this authorization, the company has repurchased 567,000 shares during the fiscal year 2016 for $29 million, including the 396,000 shares repurchased during the fourth quarter. As of the end of fiscal year 2016, the company had $71 million remaining under this authorization.
Going forward, Dave & Buster’s Entertainment expects the full-year 2017 revenues ranging from $1.155 to $1.170 billion, which is in-line with analysts’ current $1.16 billion estimate. Dave & Buster’s Entertainment also expects in FY 17 the comps to grow 2% to 3% for the year and expect to open eleven to twelve new stores in 2017, representing 12% to 13% unit growth. The net income is expected to be in the range of $101 million to $105 million and EBITDA is expected to be in the range of $270 million to $277 million in FY 17. Further, the total capital additions (net of tenant improvement allowances and other landlord payments) is expected to be in the range of $156 million to $166 million
Dave & Buster’s Entertainment stock has risen 63.27% in a year (source: Google Finance). According to tipranks.com, 5 analysts has covered the stock while recommending a “Strong Buy”. Dave & Buster’s Entertainment has an average price target of $67.20, which is a further upside of 8.06%.