Why Dave & Buster's Stock Is Trading Slightly Lower After Hours

Dave & Buster's Entertainment Inc PLAY shares are trading lower in the after-hours session after the company reported second-quarter financial results. Here's what's happening.

What To Know: The company reported quarterly earnings of 94 cents per share which beat the analyst consensus estimate of 93 cents, a 10.59% increase over earnings of 85 cents per share from the same period last year.

The company reported quarterly sales of $542.10 million which missed the analyst consensus estimate of $559.00 million, a 15.74% increase over sales of $468.36 million the same period last year.

Dave & Buster's ended the second quarter with $572.8 million of liquidity, which included $82.6 million in cash and $490.2 million available under its $500 million revolving credit facility.

The company purchased 2.1 million shares, at a total cost of $74.5 million, in the second quarter, with approval from the board of directors to increase the company's existing share repurchase authorization of $100 million.

"As we enter the second half of 2023, we remain as confident as ever in our ability to execute against the numerous and sizeable growth initiatives that we laid out in our recent investor day presentation and which we have already begun implementing," said Chris Morris, Dave & Buster's CEO.

"During the quarter, we are pleased that we continued to open new stores at highly attractive returns on invested capital, that we have diligently managed our cost structure and continued to expand our Adjusted EBITDA margins, and that our exceptional team has done a phenomenal job navigating our highly profitable and resilient business model through a dynamic period in our economy and against strong top line comparisons versus 2022. We are laser-focused on optimizing our business and growing revenue, Adjusted EBITDA and cash flow."

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PLAY Price Action: Shares of PLAY were down 0.27% at $37.40 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: Cucu Petronela from Pixabay