Dave & Buster’s Q2 revenue slides 85% due to COVID-19 restrictions

Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) published its quarterly financial results on Thursday after the bell, that topped analysts’ estimates for revenue in the fiscal second quarter. Its loss per share in Q2, however, came in narrower than expected.

Shares of the company were seen trading about 1.5% down in extended trading on Thursday. Including the price action, Dave & Buster’s is now exchanging hands at £13.79 per share versus a much lower per-share price of £3.80 per share in March, when COVID-19 pushed it into temporarily closing its stores.

The stock had started the year 2020 at a significantly higher £31.72 per share. Here’s what you need to know about how to choose winning stocks.

Dave & Buster’s Q2 financial results versus analysts’ estimates

Dave & Buster’s said that its net loss in the second quarter came in at £45.69 million that translates to 97 pence a share. In the same quarter last year, it had recorded £25.26 million of net income or 70.17 pence per share.

In terms of revenue, the restaurant and entertainment business reported a massive 85% decline in the recent quarter to £39.60 million versus £268.66 million in the comparable quarter of last year.

According to FactSet, experts had forecast the company to print £61.20 million of revenue in the fiscal second quarter. Their estimate for loss per share was capped at a higher £1.09. Dave & Buster’s had also concluded its fiscal first quarter in loss, as per the report published in June.

The Dallas-based company also said on Friday that its reopened 84 of its stores for the public in 27 states in the second quarter. It, however, acknowledged the Coronavirus uncertainty and refrained from giving financial guidance for the full year. Dave & Buster’s also attributed its weaker performance in the second quarter to the health crisis related disruptions.

CEO Brian Jenkins’ remarks on Thursday’s report

COVID-19 has so far infected more than 6.5 million people in the United States and caused over 196 thousand deaths. But CEO Brian Jenkins commented on the report on Friday and said:

“We have made steady progress reopening our stores while rapidly implementing numerous initiatives that are accelerating our business recovery and positioning us for long-term success.”

At the time of writing, the American restaurant and entertainment business is valued at £666.66 million and has a price to earnings ratio of 52.30.