GameStop (GME) Q2 2024 Earnings
GAAP EPS of $0.04 benefited from $39.5 million in net interest income driven by the company's significantly expanded cash position following ATM equity offerings; transformation costs of $9.6 million were excluded in adjusted figures.
Did GME Beat Earnings? Q2 2024 Results
Yes. GameStop reported Q2 2024 earnings of $0.01 a share on Sep 10, 2024, beating the $-0.08 consensus estimate by 112.5%. Revenue was $798.3M against a $895.7M estimate.
GameStop posted a deeply mixed fiscal second quarter, swinging to a small adjusted profit where analysts had expected a per-share loss, yet badly trailing revenue forecasts as its core retail business continued to shrink. Adjusted diluted EPS came in at $0.01, well ahead of the consensus estimate of negative $0.08, while net sales of $798.30 million missed the $895.67 million analyst expectation by roughly 11% and fell 31.4% from the year-ago quarter, with hardware, software, and collectibles all contracting. The clearest story beneath the numbers was GameStop's transformed balance sheet: massive at-the-market equity offerings swelled the company's cash and marketable securities to $4.20 billion, generating $39.50 million in interest income that propelled a GAAP net income of $14.80 million compared to a net loss of $2.80 million a year earlier. Operationally, the picture was harder to celebrate, as the operating loss widened to $22.00 million and adjusted EBITDA remained negative at $18.00 million, underscoring how much the profit story depends on investment returns rather than retail momentum. The company held no earnings call and offered no guidance.
- Significant interest income of $39.5 million driven by expanded cash position from ATM equity offerings
- Gross margin expansion to 31.2% from 26.3% year-over-year
- SG&A cost reductions of $51.7 million year-over-year
- Revenue decline across all three product categories: hardware and accessories, software, and collectibles
GME YoY Financials
| Metric | Q2 2024 | Q2 2023 | Year over year |
|---|---|---|---|
| Revenue | $798.3M | $1.2B | −31.4% |
| Gross Profit | $248.8M | $305.9M | −18.7% |
| Operating Income | −$22.0M | −$32.6M | −32.5% |
| Net Income | $14.8M | $2.0M | +628.6% |
GME Revenue by Segment
GME Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.