We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GameStop (GME) Q3 Earnings: Stock Likely to Disappoint?
Read MoreHide Full Article
GameStop Corp. (GME - Free Report) is slated to report third-quarter fiscal 2016 results on Nov 22, after the closing bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 3.9%.
Notably, in three out of the last four quarters, the company surpassed the Zacks Consensus Estimate with a positive earnings surprise of 2.6%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that GameStop is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as GameStop’s Earnings ESP is 0.00% with both the Most Accurate estimate and the Zacks Consensus Estimate pegged at 47 cents.
Further, GameStop carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing this Quarter
Recently, GameStop Corporation trimmed its third-quarter as well as fiscal 2016 projection. The company cited soft sales of new video games as well as the current sell-through rate of new video game hardware as the reason behind lowering its outlook. Management now envisions third-quarter sales to be $2 billion, flat year over year. Same store sales are expected to decline in the range of 6% to 7% in the third quarter. Earlier, the company had projected sales growth of 2% to 5%, while same-store sales were anticipated to range between a 2% decline and a 1% increase. GameStop now foresees third-quarter earnings to be in the band of 45 cents to 49 cents. Previously, GameStop expected to report earnings between 53 cents and 58 cents.
The video game industry is highly competitive, and shoppers now have many alternatives to choose from when it comes to software, hardware and game accessories for their video game consoles and personal computers.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +6.06% and a Zacks Rank #3.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GameStop (GME) Q3 Earnings: Stock Likely to Disappoint?
GameStop Corp. (GME - Free Report) is slated to report third-quarter fiscal 2016 results on Nov 22, after the closing bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 3.9%.
Notably, in three out of the last four quarters, the company surpassed the Zacks Consensus Estimate with a positive earnings surprise of 2.6%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that GameStop is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as GameStop’s Earnings ESP is 0.00% with both the Most Accurate estimate and the Zacks Consensus Estimate pegged at 47 cents.
Further, GameStop carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing this Quarter
Recently, GameStop Corporation trimmed its third-quarter as well as fiscal 2016 projection. The company cited soft sales of new video games as well as the current sell-through rate of new video game hardware as the reason behind lowering its outlook. Management now envisions third-quarter sales to be $2 billion, flat year over year. Same store sales are expected to decline in the range of 6% to 7% in the third quarter. Earlier, the company had projected sales growth of 2% to 5%, while same-store sales were anticipated to range between a 2% decline and a 1% increase. GameStop now foresees third-quarter earnings to be in the band of 45 cents to 49 cents. Previously, GameStop expected to report earnings between 53 cents and 58 cents.
The video game industry is highly competitive, and shoppers now have many alternatives to choose from when it comes to software, hardware and game accessories for their video game consoles and personal computers.
GAMESTOP CORP Price, Consensus and EPS Surprise
GAMESTOP CORP Price, Consensus and EPS Surprise | GAMESTOP CORP Quote
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Hibbett Sports, Inc. (HIBB - Free Report) has an Earnings ESP of +4% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +6.06% and a Zacks Rank #3.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>