GameStop Corp. (GME - Free Report) posted first-quarter fiscal 2023 results, delivering a narrower-than-expected loss per share and weaker-than-expected revenues. The bottom line fared better year-over-year, while the top line deteriorated from the year-earlier quarter’s reported figure.
Following the quarterly results, GameStop shares gained 5.6% after the trading session on Jun 7.
Shares of this Zacks Rank #3 (Hold) company have increased 49% in the past three months compared with the industry’s 4.2% growth.
Q1 in Details
GameStop posted an adjusted loss of 14 cents per share in first-quarter fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company had incurred an adjusted loss per share of 52 cents in the prior-year quarter.
GME reported net sales of $1,237.1 million, which missed the Zacks Consensus Estimate of $1,341 million. Also, the metric declined from $1,378.4 million reported in the year-ago fiscal quarter. Management highlighted that the decline in sales from new gaming software releases and lower sales of pre-owned software and hardware, as well as collectibles, were attributed to the top-line decline.
Margins
Gross profit decreased to $287.3 million from $298.5 million posted in the year-ago fiscal quarter. Selling, general and administrative (SG&A) expenses declined to $345.7 million from $452.2 million reported in the year-ago quarter. As a percentage of net sales, SG&A expenses came in at 27.9%, down from 32.8% reported in the year-ago period.
The company’s adjusted operating loss was $51.2 million in the reported quarter. It had reported an adjusted operating loss of $153.7 million in the prior-year fiscal period.
Other Financial Aspects
GameStop ended the first quarter with cash and cash equivalents of $1,057 million, long-term debt of $26.3 million and stockholders’ equity of $1,271.6 million. Inventory was $759.5 million at the end of the reported quarter compared with $917.6 million at the close of the same quarter last year. This reflects the company’s ongoing focus on maintaining a healthy inventory position.
During the first quarter, the company used cash flow from operations of $102.7 million compared with an outflow of $303.9 million during the same period last year. Free cash flow at the end of the reported quarter came in at negative $111.8 million. Capital expenditures in the quarter amounted to $9.1 million.
3 Red-Hot Stocks
Some top-ranked stocks are Tecnoglass (TGLS - Free Report) , Skechers U.S.A., Inc. (SKX - Free Report) and Nomad Foods Limited (NOMD - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tecnoglass manufactures and sells architectural glass and aluminum products for the residential and commercial construction industries.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 18.1% and 23.8%, respectively, from the corresponding year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 22.7%, on average.
Skechers is a worldwide producer and distributor of footwear for men, women and children.
The Zacks Consensus Estimate for Skechers’ current financial-year sales suggests growth of 7.8%, while earnings per share are expected to rise by 31.9% from the corresponding year-ago reported figures. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.
Nomad Foods manufactures and distributes frozen foods. The company has a trailing four-quarter earnings surprise of 8.5%, on average.
The Zacks Consensus Estimate for NOMD’s current financial year sales suggests growth of 8%, while earnings are likely to decline 3.4% from the prior-year reported numbers.
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GameStop Corp. (GME - Free Report) posted first-quarter fiscal 2023 results, delivering a narrower-than-expected loss per share and weaker-than-expected revenues. The bottom line fared better year-over-year, while the top line deteriorated from the year-earlier quarter’s reported figure.
Following the quarterly results, GameStop shares gained 5.6% after the trading session on Jun 7.
Shares of this Zacks Rank #3 (Hold) company have increased 49% in the past three months compared with the industry’s 4.2% growth.
Q1 in Details
GameStop posted an adjusted loss of 14 cents per share in first-quarter fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company had incurred an adjusted loss per share of 52 cents in the prior-year quarter.
GME reported net sales of $1,237.1 million, which missed the Zacks Consensus Estimate of $1,341 million. Also, the metric declined from $1,378.4 million reported in the year-ago fiscal quarter. Management highlighted that the decline in sales from new gaming software releases and lower sales of pre-owned software and hardware, as well as collectibles, were attributed to the top-line decline.
Margins
Gross profit decreased to $287.3 million from $298.5 million posted in the year-ago fiscal quarter. Selling, general and administrative (SG&A) expenses declined to $345.7 million from $452.2 million reported in the year-ago quarter. As a percentage of net sales, SG&A expenses came in at 27.9%, down from 32.8% reported in the year-ago period.
The company’s adjusted operating loss was $51.2 million in the reported quarter. It had reported an adjusted operating loss of $153.7 million in the prior-year fiscal period.
Other Financial Aspects
GameStop ended the first quarter with cash and cash equivalents of $1,057 million, long-term debt of $26.3 million and stockholders’ equity of $1,271.6 million. Inventory was $759.5 million at the end of the reported quarter compared with $917.6 million at the close of the same quarter last year. This reflects the company’s ongoing focus on maintaining a healthy inventory position.
During the first quarter, the company used cash flow from operations of $102.7 million compared with an outflow of $303.9 million during the same period last year. Free cash flow at the end of the reported quarter came in at negative $111.8 million. Capital expenditures in the quarter amounted to $9.1 million.
3 Red-Hot Stocks
Some top-ranked stocks are Tecnoglass (TGLS - Free Report) , Skechers U.S.A., Inc. (SKX - Free Report) and Nomad Foods Limited (NOMD - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tecnoglass manufactures and sells architectural glass and aluminum products for the residential and commercial construction industries.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 18.1% and 23.8%, respectively, from the corresponding year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 22.7%, on average.
Skechers is a worldwide producer and distributor of footwear for men, women and children.
The Zacks Consensus Estimate for Skechers’ current financial-year sales suggests growth of 7.8%, while earnings per share are expected to rise by 31.9% from the corresponding year-ago reported figures. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.
Nomad Foods manufactures and distributes frozen foods. The company has a trailing four-quarter earnings surprise of 8.5%, on average.
The Zacks Consensus Estimate for NOMD’s current financial year sales suggests growth of 8%, while earnings are likely to decline 3.4% from the prior-year reported numbers.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Get the latest research report on SKX - FREE
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