04:18 AM EST, 12/11/2024 (MT Newswires) -- (Updates with the stock move and analyst comments in the headline and the last three paragraphs.)

Dave & Buster's Entertainment (PLAY) late Tuesday reported fiscal Q3 adjusted loss of $0.45, swinging from a profit of $0.01 a year earlier.

Analysts polled by FactSet expected a loss of $0.36.

Revenue for the quarter ended Nov. 5 was $453 million, down from $466.9 million a year earlier.

Analysts surveyed by FactSet expected $463.7 million.

The company also said Chris Morris has resigned as chief executive and director to pursue other interests, and Kevin Sheehan, current Chair of the board, will serve as interim CEO.

Dave & Buster's shares were down almost 15% in pre-market activity on Wednesday.

Truist Securities downgraded the company's shares to hold from buy and reduced its price target to $36 from $56.

"The unexpected resignation of its CEO (to 'pursue other interests'), worse than expected sales lifts from recent remodels (a key component of its turnaround), and another quarterly sales miss in 3Q24 (7th consecutive) shakes our confidence in PLAY's sales catalysts," Truist analyst Jake Bartlett said in a research note Tuesday.