Dave & Buster’s Earnings: PLAY Stock Dips 4% Lower on Q1 Misses

Dave & Buster’s (NASDAQ:PLAY) earnings for the entertainment company’s fiscal first quarter of 2020 have PLAY stock dipping lower after markets closed on Thursday. That’s thanks to its diluted losses per share of $1.37 missing Wall Street’s estimate for a loss of 85 cents. Its revenue of $159.81 million also comes in below analysts’ estimates of $167.83 million.

Dave & Buster's Earnings: PLAY Stock Dips 4% Lower on Q1 Misses

Source: Jeff Bukowski/Shutterstock.com

Let’s take a closer look at the most recent Dave & Buster’s earnings report below.

  • Diluted per-share losses are much worse than the diluted EPS of $1.13 from the same time last year.
  • Revenue is sitting 56% lower than the $363.58 million reported in fiscal Q1 2019.
  • Operating loss of $61.41 million is a major decline year-over-year from an operating income of $57.75 million.
  • The Dave & Buster’s earnings also have it reporting a net loss of $43.54 million.
  • That doesn’t look good next to its net income of $42.44 million from the same period of the year prior.

Brian Jenkins, CEO of Dave & Buster’s, said this in the earnings report.

“The negative effects of the COVID-19 pandemic are clearly evident in our first quarter results, during which we temporarily closed all of our stores for the final 6 weeks of the period. While still early and with many variables that are beyond our control, we are confident that we are taking the right steps to rebuild our business and emerge from this challenging time.”

Dave & Buster’s doesn’t include an outlook in its current earnings report. It cites current economical conditions caused by the novel coronavirus as the reason for this. This has it following the same trend as many other companies.

PLAY stock was down 3.8% after-hours Thursday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/06/dave-busters-earnings-hamper-play-stock/.

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