CEC Entertainment Earnings: Everything You Must Know Now

CEC Entertainment Inc. (NYSE:CEC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

CEC Entertainment Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 82.61% to $0.42 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 5.2% to $191.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CEC Entertainment Inc. reported adjusted EPS income of $0.42 per share. By that measure, the company beat the mean analyst estimate of $0.33. It missed the average revenue estimate of $192.85 million.

Quoting Management: Michael Magusiak, President and Chief Executive Officer, stated, “Our management team is pleased with the revenue and profit results of the second quarter and first half of 2013. Revenue in the second quarter increased 5.2%, driven by our 2.9% growth in comparable store sales and new store development. The combination of increased revenue and the implementation of our profit strategies improved our store level operating margins by 250 basis points.”

Key Stats (on next page)…

Revenue decreased 24.83% from $255.3 million in the previous quarter. EPS decreased 77.89% from $1.90 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $2.88 to a profit of $2.86 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)