Dave & Buster's Shares Rise After Mixed Quarter and Solid Guidance

Dave & Buster's beat on revenue estimates, missed on earnings per share and issued solid 2019 guidance.
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Shares of Dave & Buster's PLAY rose after company beat revenue estimates, missed on earnings and provided solid full year 2019 guidance. 

The stock was rising 4.30% to $41.70 a share in postmarket trading Tuesday, after having fallen 0.91% in regular hours. 

GAAP Earnings per share for the third quarter came in at 2 cents, missing analysts estimates of 3 cents. Last year the company reported making  30 cents a share. Revenue was $299.4 million, beating Wall Street estimates of $296 million and rising 6.1%. same-store-sales declined 4.1%, against expectations of 4%. Store count increased 13%. 

Food and beverage revenue was $124 million, beating estimates of $123 million. Entertainment revenue was $174 million, beating estimates of $173 million.

"We delivered 6% revenue growth in the third quarter driven by strong new store performance, and are encouraged by our progress advancing our near-term priorities to drive improved performance and sustainable shareholder value,” said CEO Brian Jenkins. “We are successfully executing our plan to drive growth and position the company for long-term success despite comp sales headwinds from increased competition."

The company raised the mid range of its full year 2019 revenue guidance to $1.35 billion from a prior forecast of $1.48 billion. The mid range of same-store-sales guidance was maintained at 2.75%, but the range was tightened. Management is now looking for a range between 2.5% and 3%. Before it forecast a range of between 2% and 3.5%. Adjusted EBITDA for the year is now forecast at a mid range of $277.5 million, up from a prior guide of $277 million. 

The stock was down 8% for the year heading into the earnings print.