Small Cap Earnings Beat: Dave & Buster’s Entertainment (NASDAQ: PLAY), TiVo (NASDAQ: TIVO)

After the close on September 8, 2015, two very popular and high profile small cap companies are reported strong quarterly financials.

 Dave & Buster’s Entertainment (NASDAQ:PLAY) just crushed Wall Street expectations for the fiscal quarter ending June 30, 2015 when its released its results after the close yesterday. The Company reported $0.40 in earnings per share on revenue of $217 million, compared with Street forecasts of $0.23 in earnings per share on $204.3 million in revenue. Higher than expected same-store sales and meaningful margin improvement were the drivers behind the incredible outperformance. On the strength of the blowout quarter, management raised its revenue expectations by 3% but net income guidance was raised by a whopping 20% for the full year.

Judging by after-hours trading, investors are expecting new 52-week highs in Wednesday’s trading and the momentum could carry over if Wall Street EPS forecasts are raised materially for 2016 from the current consensus of $1.33. 

The results and forecasts reported by technology pioneer TiVo (NASDAQ:TIVO) were mixed, which may cause some volatility in these shares. TiVo beat Wall Street estimates on services and total revenue but met expectations on earnings per share of $0.09 since there were greater shares outstanding during the quarter versus the year ago period. However, looking at the pure net income figure, net income of $11.9 million was substantially greater than the Company’s $7 million - $10 million predicted range.

Since results were largely driven by strong subscription growth, management raised top-line guidance for the current quarter of $100 million - $103 million versus $98 million previously, but cut net income guidance nearly in half due to higher expected operating costs related to its recent patent suit against Samsung. It will be interesting to see how the Street approaches the revised guidance.