Reopening Economy Drives Dave & Buster's Revenue Surge

Shares of Dave & Buster’s Entertainment rose sharply in after-hours trading Thursday, after the entertainment/restaurant chain reported stronger-than-expected results for its latest quarter.

© TheStreet Reopening Economy Drives Dave & Buster’s Revenue Surge

In the fiscal 2021 first quarter ended May 2, the company registered revenue of $265.3 million, compared with $159.8 million in the first quarter of 2020 and $363.6 million in the first quarter of 2019.

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The FactSet analyst consensus called for revenue of $246.3 million in the latest quarter.

Net income totaled $19.6 million, or $0.40 per share, in the latest quarter, compared with a net loss of $43.5 million, or $1.37 per share, in the first quarter of 2020 and net income of $42.4 million, or $1.13 per share, in the first quarter of 2019.

The latest earnings-per-share figure creamed the FactSet analyst forecast of a 16-cent loss.

Dave & Buster’s recently stood at $46.62 in after-hours trading, up 5.7%. It has risen 72% over the past six months amid optimism for economic recovery.

“We saw a significant improvement in demand across our store base in the first quarter, including at our recently re-opened New York and California stores,” said Chief Executive Brian Jenkins.

Sales “surpassed the top end of our expected range for the quarter,” he said. “This strong sales rebound, coupled with our lean operating model … generated $72 million in EBITDA, only 19% below the first quarter of 2019.”

In March, Raymond James analyst Brian Vaccaro lifted his share price target for Dave & Buster’s to $55 from $45 and kept his strong-buy rating amid solid sales.

This article was originally published by TheStreet.

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