Shares of Dave & Buster's Entertainment Inc. (PLAY, Financial) fell more than 5% in after-hours trading on Tuesday after the company reported its financial results for the fourth quarter. The company posted adjusted earnings per share of 61 cents on revenue of $304.9 million, which was 12.9% higher than the figure reported a year earlier. Moreover, the company managed to beat earnings expectations by 1 cent. Revenue, however, fell short of estimates by $580,000.
Same-store sales fell 5.9%. Food and beverage sales declined 7.8% and amusements and other sales decreased 4.2%
“Our primary growth vehicle and the biggest driver of value continues to be opening stores that offer excellent returns in the face of a more intense competitive environment," CEO Steve King said. "However, recent sales trends in our comparable stores have been disappointing and we are working diligently to rebuild momentum by evolving the brand.”
Looking ahead, the company expects total revenues of $1.20 billion to $1.24 billion for the year and comparable store sales to decrease in the low- to mid-single digits. Further, the net income is projected to be between $95 million and $110 million. Earnings before interest, taxes, depreciation and amortization are anticipated to range between $255 million and $275 million.Â
Quest Resource Holding Corp. (QRHC, Financial) also fell on Tuesday after reporting its financial results for the fourth quarter. The company posted a loss of 10 cents. Revenue of $22.51 million decreased 31.4% from the prior-year quarter. The company fell short of earnings estimates by 4 cents and revenue expectations by $9.39 million.
For the year, the company reported a loss of $5.8 million, compared with a loss of $8 million in 2016. Revenue was $138.3 million. The gross profit was $15.7 million, a 9% increase from $14.4 million in 2016.Ă‚ The gross margin was 11.4%, a 3.6% increase from the prior year.
"We made tremendous progress in 2017 executing on our strategic plan," President and CEO S. Ray Hatch said. "We transitioned our company so that we can continue to deliver exceptional services to our customers and show sustainable improvements in financial performance”.
Disclosure: The author holds no positions in any stocks mentioned.
