Earnings Analysis To Watch: Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) reported earnings for the three months ended Jan2016 on March 29, 2016. The company earned $0.53 per share on revenue of $234.21M. Analysts had been modeling earning per share of $0.43 with $229.35M in revenue.

Dave & Buster’s Entertainment, Inc. (PLAY) on March 29, 2016 announced financial results for its fourth quarter and full year 2015, which ended on January 31, 2016.  The Company also issued guidance for the full year 2016.

Key highlights from the fourth quarter 2015 compared to the fourth quarter 2014 include:

• Total revenues increased 13.1% to $234.2 million from $207.1 million.


• Comparable store sales increased 6.0% vs. a 10.5% increase in last year’s fourth quarter.


• Opened four stores compared to three new stores in the fourth quarter 2014.


• Adjusted EBITDA, a non-GAAP measure, increased 28.9% to $66.4 million from $51.5 million.  As a percentage of total revenues, Adjusted EBITDA increased approximately 340 basis points to 28.3%.


• Net income increased 56.5% to $23.0 million, or $0.53 per diluted share, compared to net income of $14.7 million, or $0.34 per diluted share, in the fourth quarter 2014.


• Pro forma net income, a non-GAAP measure, increased 61.4% to $22.8 million, or $0.53 per diluted share, compared to pro forma net income of $14.1 million, or $0.34 per diluted share, in the same period last year.

Key highlights from the full year 2015 compared to the full year 2014 include:

• Total revenues increased 16.1% to $867.0 million from $746.8 million.


• Comparable store sales increased 8.9%.


• Opened ten stores, including one relocation, compared to eight stores in fiscal 2014.


• Adjusted EBITDA, a non-GAAP measure, increased 30.5% to $215.4 million from $165.1 million. As a percentage of total revenues, Adjusted EBITDA increased approximately 270 basis points to 24.8%.


• Net income increased 680.8% to $59.6 million, or $1.39 per diluted share, compared to net income of $7.6 million, or $0.21 per diluted share, for the full year 2014.


• Pro forma net income, a non-GAAP measure, increased 98.2% to $65.0 million, or $1.52 per diluted share, compared to $32.8 million, or $0.78 per diluted share, for the full year 2014.

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Dave & Buster’s Entertainment, Inc. earnings per share showed an increasing trend of 577.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 212%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 56.8% when sales grew 10.7. It reported 13.1% sales growth, and 71.5% EPS growth in the last quarter.

The stock is trading at $39.29, up 33.01% from 52-week low of $29.54. The stock trades down -9.37% from its peak of $43.35 and 24.2% above the consensus price target of $48.8. Its volume clocked up at 0.28 million shares which is lower than the average volume of 0.62 million shares. Its market capitalization currently stands at $1.64B.