Dave& Busters Entertainment Inc (NASDAQ:PLAY) delivered beats on both second-quarter earnings and revenue, pushing shares higher in premarket business on Friday as the company looked forward to virtual reality games to drive its bottomline in the future.
Net income for the quarter reached US$33.8mln, or US$0.84 per diluted share, compared with net income of US$30.4mln, or $0.71 per diluted share in the year-ago quarter. The consensus expectation was for earnings of US$0.67. A turnaround in its entertainment complexes boosted the company's performance.
Revenue of US$319.2mln topped the consensus estimate of US$315.25mln and the year-ago level for the quarter of US$280.75mln.
Dave & Buster's launched Jurassic World VR Expedition, a virtual reality romp with dinosaurs such as T-Rex, on its industry-leading platform, which may further boost its performance going forward.
"Our new stores are tracking well and we remain well-positioned to capitalize on the long-term opportunity to more than double our store base in the US and Canada,” said chief executive Brian Jenkins.
Shares of Dave & Buster's gained nearly 3% to US$59.19, having ended 1.05% higher on Thursday at US$57.52.
The company opened five new stores in the quarter and said they remain on track to open 14 to 15 new stores for the fiscal year, representing 13% to 14% unit growth.
Given its strong performance, the company raised its guidance for fiscal 2018. Total revenues are now forecast to reach US$1.23 to US$1.255bn, versus the previous US$1.2-US$1.24bn. Net income will reach US$101-US$111mln, from the previous US$95 to US$110mln.
Dave & Buster's is the owner and operator of 117 venues in North America that combine entertainment and dining while offering customers the opportunity to "Eat Drink Play and Watch," all in one location.
The company is based in Dallas, Texas.