Update: GameStop was originally slated to report earnings results next Tuesday. Management released the results earlier on Friday morning. GameStop posted an adjusted first-quarter loss of -$0.12/share, missing the consensus estimate. Revenues of $881.8 million also missed projections. GME shares are currently down more than 20% in early trading.

Video game retailer GameStop (GME Quick QuoteGME - Free Report) is set to report Q1 results next week on Tuesday after the closing bell. GameStop, a Zacks Rank #5 (Strong Sell), has exceeded the earnings mark in three of the last four quarters. Amid the recent meme stock resurgence, is GME a buy prior to the release?

Analysts are expecting the company to post a loss of -$0.10/share, reflecting a 28.5% improvement relative to the same quarter last year. Sales are projected to decline 27.3% to $900 million. GameStop has averaged a 46.4% positive earnings surprise over the past four quarters.

GME shares have more than doubled over the past month amid the return of “Roaring Kitty”, the influential trader Keith Gill who revealed a substantial stake in the company. Gill rose to fame in 2021 and became the face of the original meme-stock rally; he is hosting a live YouTube stream this morning.

The stock is still heavily overvalued based on traditional valuation metrics. Traders would be wise to exercise caution ahead of the Q1 announcement.