Dave & Buster’s Entertainment, Inc. PLAY stock is trading lower Tuesday after the company reported worse-than-expected second quarter earnings per share and sales on Monday after the market closed.
What To Know: The company reported adjusted earnings per share of 40 cents, missing the consensus estimate of 92 cents. In addition, the company reported sales of $557.41 million, missing the consensus estimate of $562.78 million.
Comparable store sales declined 3% from the prior year period, reflecting softer consumer traffic.
Net income fell to $11.4 million, or 32 cents per diluted share, compared with $40.3 million, or 99 cents per diluted share, a year earlier. Adjusted net income totaled $14.1 million, or 40 cents per diluted share, down from $45.7 million, or $1.12 per diluted share, in the same quarter last year.
Adjusted EBITDA also slipped to $129.8 million from $151.6 million in the second quarter of fiscal year 2024, while operating income decreased to $53 million from $84.5 million.
The company also appointed Tarun Lal as CEO in July, opened three new domestic Dave & Buster’s stores during the quarter and launched its second international franchise location in India.
Following the earnings report, UBS analyst Dennis Geiger maintained a Neutral rating on Dave & Buster’s and lowered the price target from $29 to $25.
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PLAY Price Action: At the time of writing, Dave & Busters stock is trading 15.71% lower at $20.39, according to data from Benzinga Pro.
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