Dave & Buster's surges to record high after blowout earnings report

Dave & Buster's Entertainment Inc. jumped to record highs Tuesday afternoon after the chain of adult arcades and eateries easily beat earnings expectations. Dave & Buster's reported net income of $10.8 million, or 25 cents a share, on sales of $228.7 million, more than doubling its profit and showing a 19% revenue gain from the same quarter a year ago. Analysts polled by FactSet expected Dave & Buster's to report earnings of 14 cents a share on revenue of $216.7 million. The company also suggested it could hit $1 billion in annual sales for the first time by increasing its annual guidance for revenue to a range of $998 million-$1.003 billion, from $983 million-$995 million. going to add this sentence: The company also said it plans to open 11 new locations in th e current fiscal year, the top of a previous guidance range, and 11 to 12 new stores in the 2017 fiscal year. Dave & Buster's stock, which has never traded for more than $50 a share, jumped 11.5% in after-hours trading to $53.50.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.