What: Shares of Dave & Buster's Entertainment Inc. (NASDAQ:PLAY) jumped 19.9% in June, according to data provided by S&P Global Market Intelligence, after its quarterly earnings report wowed investors.
So what: First-quarter revenue jumped an impressive 17.7% to $262.0 million in the quarter on the back of a 3.6% increase in comparable store sales. And net income popped 59.5% year over year to $31.2 million, or $0.72 per share.
What's even more encouraging than one quarter's results is that management increased full-year revenue guidance from the $967 million to $987 million range to a $983 million to $995 million range. Net income guidance also increased from a $74 million to $80 million range to a $80 million to $85 million range.
Now what: Everything is going right for Dave & Buster's, and it looks like steady growth will continue throughout the year. Shares are getting expensive at 28 times trailing earnings and 20 times forward estimates, but you can't argue with the results. If you're looking for an entertainment play with a lot of growth potential, Dave & Buster's Entertainment is a great option.