Earnings Movers | Stock Buybacks of PLAY vs. Stock Offering of GME? Stock Price is the Answer
1. $Dave & Buster(PLAY)$ saw its stock rise by 12% in overnight trading after the company beat EPS and revealed aggressive stock buybacks,
EPS: $1.12, surpassing the consensus estimate of $0.87. This marks an increase from $0.94 per share a year ago and represents an earnings surprise of 28.74%.
In contrast to the previous quarter, where Dave & Buster’s delivered an EPS of $1.12, missing the expected $1.56, the latest results came as a positive surprise for investors.
Revenue: $557.1 million, though it fell short of analysts’ expectations by $10.23 million.
Stock buybacks to $60 mln
Dave & Buster’s also continued its aggressive stock buyback program, repurchasing $47.4 million worth of its own shares during the quarter. This brings the total repurchases for the year to $60 million, leaving the company with $13.1 million in cash at the end of the quarter.
2. Video game retailer $GameStop(GME)$ saw its stock drop nearly 10% in after-hours trading following its latest earnings report.
Revenue: $798 million, below the market expectation of $896 million. (a 10.94% miss) Also a 31% year-over-year decline.
Despite this, GameStop managed to achieve an unexpected profit of $14.8 million.
EPS: $0.01, against an expected loss of $0.09 per share. ( a 111.11% beat)
Although exceeding EPS expectations, GameStop's latest files also included details on the previously announced May stock offering. The company is set to issue and sell up to 20 million shares of its Class A Common Stock under the terms of the Sales Agreement and Registration Statement filed in May 2024.
Compared to its earnings data, market may focus more on its "meme" concept. Maybe the next surge will come with Roaring Kitty.
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