Dave & Buster’s (NASDAQ:PLAY)
Earnings Report
After the close today, Dave & Buster’s (PLAY) reported Q2 earnings that crushed Wall Street expectations and sent the shares jumping in the post market session. Earnings came in at 40 cents per share on $217.3 million in revenue topping analyst’s expectations of 23 cents per share on $204.3 million in revenue. PLAY also raised its 2015 full-year guidance to the tune of $844-853 million in revenues, up from $822-853 million, and sees comparable-store sales increasing 6.5-7.5% up from its previous outlook of 4-5% growth. They are also looking to add 8-9 new stores for the year vs. the 7-8 previously anticipated.
CEO Comments
Steve King, Chief Executive Officer said,
“Dave & Buster’s is enjoying an incredible year of financial performance and we are once again delighted to be raising our annual guidance. During the second quarter, we generated a double-digit comparable store sales gain and have now exceeded the competitive industry benchmark for thirteen consecutive quarters. Our 2014 and 2015 classes meaningfully contributed to the 19.8% growth in our second quarter top-line, and similar to the first quarter, our strength was broad-based across our sales categories, operating days, day-parts, and geographies.” Benzinga
Analysts still remain bullish on PLAY with an average price target of $44.13 according to Thomson Reuters. This is a great sign for investors and with another strong earnings release in their books, PLAY is setting the stage for a very strong 2015. You can count on the share price to reflect their hard work as they continue to execute their strategy and push for further growth.
PLAY Technicals
Dave & Busters has been a very trendy chart since its IPO back in 2014 and even with the recent market selloff it has still managed to stay above the 200 day moving average. PLAY started the year at $27.33 and has climbed to a high of $40.14 at the beginning of August with a yearly low of $24.76 in the beginning of the year. As of the close of yesterday, PLAY is up 119% since it started trading last year.
With the blowout Q2 earnings, share prices skyrocketed to over $41 per share before settling in at just under $41 to end the session. This is a big move for PLAY and as long as prices can hold that big $40 price level, we could see this stock get some serious momentum behind it with new highs on tap for tomorrow. The $40 level should act as support now and being that we are in new territory with these highs it’s hard to say where the sellers will step in. All major moving averages are pointing north along with the Relative Strength Index, which is currently resting at 58.42. Big gaps like this tend to see some selling in the form of profit taking so you should expect some of that tomorrow along with above average volatility.
About Dave & Busters
Dave & Busters Entertainment, Inc. owns and operates venues that combine dining and entertainment for adults and families in North America. Its venues offer a menu of Fun American New Gourmet entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Busters and Dave & Busters Grand Sports Café names. As of June 8, 2015, it owned and operated 76 venues in 30 states and Canada. Dave & Buster’s Entertainment, Inc. was founded in 1982 and is headquartered in Dallas, Texas. Yahoo Finance
