What to Expect From GameStop Earnings
GameStop Corp. (NYSE: GME) is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday. The consensus estimates from Thomson Reuters are calling for $0.47 in earnings per share (EPS) and $1.99 billion in revenue. The…
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GameStop Corp. (NYSE: GME) is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday. The consensus estimates from Thomson Reuters are calling for $0.47 in earnings per share (EPS) and $1.99 billion in revenue. The same period from last year had $0.54 in EPS and $2.02 billion in revenue.
Leading Wall Street analysts feel that hardware updates and the holiday release slate this year should help the gaming segment. In addition, the second-half hardware refreshes and fourth-quarter high-quality product releases could help drive traffic to the stores.
The stock has been crushed since a very negative third-quarter pre-announcement, as well as ongoing difficult trends. Merrill Lynch lowered its price target but kept a Buy rating, given the valuation at current levels is very cheap and noting that the headwinds the company faces are fully disclosed. With a big dividend yield, and the fourth-quarter holiday season underway, a rebound is quite possible.
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A few analysts weighed in on GameStop ahead of earnings:
- Merrill Lynch has a Buy rating with a $37 price target.
- Wedbush has a Buy rating with a $30 price target.
- Baird reiterated an Outperform rating with a $25 price target.
- Telsey Advisory Group has an Outperform rating with a $30 price target.
- Piper Jaffray has a Neutral rating with a $23 price target.
- Macquarie reiterated an Outperform rating with a $36 price target.
- SunTrust Banks reiterated a Buy rating.
Excluding Tuesday’s move, GameStop has underperformed the broad markets with the stock down 16% year to date.
Shares of GameStop were last trading up over 1% at $23.83, with a consensus analyst price target of $26.61 and a 52-week trading range of $20.10 to $38.23.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
