Dave & Busters Trades Higher After Q4 Earnings Beat, Adds $200M To Buyback

Dave & Buster’s Entertainment Inc PLAY shares are up 5 percent after reporting a fourth-quarter earnings beat.

The company reported earnings of 75 cents per share, beating estimates by 12 cents. Sales came in at $331.8 million, beating estimates by $2.51 million. The company also added $200 million to its buyback plan.

Dave and Buster’s sees 2019 sales of $1.37 billion-$1.4 billion.

"We are pleased to finish the year on a strong note. On a comparable week basis, we drove double-digit revenue growth in Q4 as comparable store sales increased 2.9% and new store performance remained strong. 2018 was another year of record sales and EBITDA, and looking ahead to 2019, we are well positioned to deliver new revenue and EBITDA highs, and reinforce our leadership position in the combined entertainment and dining space," said CEO Brian Jenkins.

Highlights

• Comp store sales increased 2.9 percent
• Total revenues increased 8.8 percent
• Opened three new stores
• Launched Dragonfrost, the company’s proprietary VR title
• 1.3 million shares repurchased

Dave & Buster’s shares are up 4.8 percent at $52.91 in the after-hours session The stock closed Tuesday at $50.48 per share.

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Photo credit: Mike Mozart, Flickr