GameStop Holiday Quarter Earnings Preview Indicates Muted Numbers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy GME?
Source: seekingalpha
- Earnings Preview: GameStop anticipates a non-GAAP EPS of $0.49 and revenue of $1.1 billion for the holiday quarter, indicating that the company continues to face challenges in a competitive retail environment, despite seemingly stable figures.
- Market Sentiment: Ahead of the earnings report, GameStop's options trading leans bullish, suggesting that investors are optimistic about the upcoming performance, potentially reflecting expectations for the company's future transformation.
- Industry Context: Despite the uncertainties surrounding GameStop's transformation, its position in the video game retail market remains significant, especially during the holiday season when consumer spending typically increases.
- Strategic Outlook: GameStop's earnings report will provide investors with critical financial metrics to assess its performance amid digital transformation and market competition, with future strategic adjustments likely impacting its long-term growth potential.
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Analyst Views on GME
About GME
GameStop Corp. offers games and entertainment products through its stores and ecommerce platforms. The Company operates in four geographic segments: United States, Canada, Australia and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. The Company has a total of approximately 3,203 stores across all of its segments: 2,325 in the United States, 193 in Canada, 374 in Australia, and 311 in Europe. Its stores and ecommerce sites operate primarily under the names GameStop, EB Games and Micromania. Its Australia and Europe segments also include 38 pop culture-themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. Its retail stores are generally located in strip centers, shopping malls and pedestrian areas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Sales Decline: GameStop reported a revenue of $1.1 billion, down over 14% from the previous year, with significant declines in hardware and software sales, although collectibles showed some growth.
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