U.S. stocks were in positive territory on Wednesday morning on positive sentiments from the China-U.S. trade talks. The Dow Jones Industrial Average gained more than 400 points to 24,799, the S&P 500 index gained 1.74% to 2,682, and the Nasdaq Composite Index rose 2.20% to 7,186.
Shares of Dave & Buster's Entertainment Inc. (PLAY, Financial) fell 7% on Wednesday after the company posted third-quarter earnings of 30 cents per share on $282.14 million in revenue, reflecting 12.9% year-over-year growth. The company beat earnings expectations by 6 cents and revenues expectations by $4.66 million.
By segment, Food and Beverage revenues rose 10.3% to $118.8 million and Amusement and Other revenues increased 14.8% to $163.3 million.
Earnings before interest, taxes, depreciation and amortization increased 1% from the prior-year quarter to $46 million. As a percentage of total revenues, however, EBITDA declined to 16.3% from 18.2%.
Adjusted EBITDA decreased 2.7% to $52.7 million. As a percentage of total revenues, it decreased to 18.7% from 21.7%.
Looking ahead to full fiscal 2018, the company expects total revenue between $1.24 billion and $1.25 billion, higher than previous guidance of $1.23 billion to $1.25 billion. It also projects EBITDA in the range of $268 million to $277 million and net income of $106 million to $113 million.
Gainers
- United Rentals Inc. (URI, Financial)
- MGM Resorts International (MGM, Financial)
- Broadcom Inc. (AVGO, Financial)
- Dentsply Sirona Inc. (XRAY, Financial)
- Wynn Resorts Ltd. (WYNN, Financial)
Losers
- Under Armour Inc. (UAA, Financial) (UA, Financial)
- Mosaic Co. (MOS, Financial)
- Ventas Inc. (VTR, Financial)
- Verizon Communications Inc. (VZ, Financial)
Global markets
The main European stock markets traded higher. The U.K.'s FTSE 100 rose 1.08%, France's CAC 40 jumped 2.15%, Germany's Dax gained 1.38% and Spain's IBEX 35 advanced 1.35%.
In Asia, Japan's Nikkei 225 gained 2.15%, India’s BSE Sensex jumped 1.79%, Hong Kong's Hang Seng gained 1.61% and China's Shanghai Composite rose 0.31%.
Disclosure: The author holds no positions in any stocks mentioned.
