Dave & Buster’s results: PLAY stock drops 4% lower on Q1 miss

Dave & Buster's results: PLAY stock drops 4% lower on Q1 miss

<p>Dave & Busters (NASDAQ: PLAY) earnings for the entertainment company’s fiscal first quarter of 2020 have reduced the PLAY share after the markets closed on Thursday. It’s because of its diluted $ 1.37 per share loss, Wall Street did not estimate a loss of 85 cents. Its revenue of $ 159.81 million is also below analysts’ estimates of $ 167.83 million.

Source: Jeff Bukowski / Shutterstock.com

Let’s take a closer look at the latest Dave & Buster results reports below.

Diluted losses per share are much worse than the diluted earnings of $ 1.13 from the same time last year. Revenue is 56% lower than the $ 363.58 million reported in the first quarter of 2019. Operating profit of $ 61.41 million is a significant decrease compared to the previous year from an operating profit of $ 57.75 million. Dave & Buster’s revenue also reports a net loss of $ 43.54 million. It does not look good next to its net profit of $ 42.44 million from the same period the year before.

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

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

Dave & Buster’s does not include a prospect in its current earnings report. It cites current economic conditions caused by the new coronavirus as the reason for this. This has to follow the same trend as many other companies.

PLAY inventory decreased by 3.8% after office hours on Thursday.

At the time of writing, William White had no position in any of the above securities.

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

© 2020 InvestorPlace Media, LLC