NEW YORK ( TheStreet) -- Kona Grill (KONA - Get Report) shares leapt in late trades on Monday after the Scottsdale, Ariz.-based restaurant operator boosted its third-quarter financial outlook, citing strong sales growth.
The company now sees net income of $500,000 to $600,000, or 5 to 6 cents a share, in the three months ended Sept. 30, up from a prior projection of $100,000 to $300,000, or 1 to 3 cents a share. Revenue is expected to come in between $24.1 million to $24.2 million in the quarter, an increase of $500,000 on the high end, Kona Grill said.
Same-store sales are now pegged at increasing 9% vs. a previous view for growth of 6%.
"Our restaurants continue to gain market share as evidenced by our strong same-store sales," said Michael Nahkunst, the company's interim president and CEO, in a statement. "Our revised outlook for stronger earnings in the third quarter firmly supports our forecast of achieving profitability for the year."The stock was last quoted at $6.10, up 16%, with volume of less than 5,000, according to Nasdaq.com. Based on Monday's regular session close at $5.26, the shares were already up more than 50% in the past year. Kona Grill, which serves sushi, operates 24 restaurants in 16 states, and all five of the analysts covering the stock are bullish at either strong buy (2) or buy (3).