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3 Stocks to Watch on Wednesday: Dave & Buster’s Entertainment, Inc. (PLAY), Sonic Corporation (SONC) and Verint Systems Inc. (VRNT)

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The stock market recovered from an early dip Tuesday following Federal Reserve Chairwoman Janet Yellen's public announcement that the central bank will "proceed cautiously" on raising interest rates. The S&P 500 pressed 0.9% higher, while the Dow Jones Industrial Average managed to finish ahead by 0.6%.

As we enter hump day trading, a few stocks look likely to be on the move thanks to quarterly earnings. Today, be on the lookout for Sonic Corporation (NASDAQ: SONC ), Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY ) and Verint Systems Inc. (NASDAQ: VRNT ).

Here's why:

Sonic Corporation (SONC)

Better-than-expected second-quarter earnings helped Sonic shares move in the right direction after the bell Tuesday.

The fast-food chain posted its financial results for the period ended Feb. 29, reporting an adjusted profit of 18 cents per share on revenues of $133.2 million. These figures surpassed Wall Street projections of 16 cents a share on sales of $128 million.

Part of the restaurant chain's success came from a strong quarter in its core menu items and limited-time offers in its most recent quarter.

Sonic also updated its outlook for the fiscal year ending in August, expecting EPS to surge 20% to 25% - the company previously projected an earnings increase of 16% to 20%.

SONC was set to open some 4% higher in Wednesday trading.

Dave & Buster's Entertainment, Inc. (PLAY)

The eatin'-and-gamin' chain's latest quarterly earnings results also beat analysts expectations, though PLAY stock appeared to be ready to open Wednesday in the other direction.

Dave & Busters' fourth-quarter profit was $23 million, or 53 cents a share, which was higher than the Thomson Reuters consensus estimate of 43 cents a share. Revenue was 13% higher compared to the year-ago period at $234.2 million.

The company's morning slide could be attributed to its full-year projections. Dave & Busters expects sales at locations open for at least 1.5 years to rise 2% to 4% - significantly lower than the 8.9% reported in the most recent year.

On a more positive note, the chain expects sales for the current fiscal year to be in the range of $967 million to $987 million - in line with the Wall Street estimate of $976 million.

Verint Systems Inc. (VRNT)

Disappointing fourth-quarter results by Verint Systems had VRNT primed to plummet in Wednesday's morning trading.

The analytics company posted adjusted Q4 EPS of 90 cents on revenue of $281.8 million, with both numbers felling well under Wall Street's expectations of $1.16 per share on revenues of $318.5 million.

Verint also updated its full-year 2016 outlook, projecting earnings plus-or-minus 2% on last year's $3.04 in EPS. The consensus estimate was for earnings of $3.54 a share.

The company did also announce its first-ever stock buyback program, at $150 million over the next two years, but that wasn't enough to keep VRNT from diving 15% in Wednesday's premarket trade.

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The post 3 Stocks to Watch on Wednesday: Dave & Buster's Entertainment, Inc. (PLAY), Sonic Corporation (SONC) and Verint Systems Inc. (VRNT) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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