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GameStop Corp. (GME - Free Report) just released its latest quarterly financial results, posting adjusted earnings of $2.02 per share and revenues of $3.5 billion.
Currently, GME is a Zacks Rank #4 (Sell), but that could change based on today’s results. GameStop shares had slumped nearly 35% ahead of this report date. However, the stock has rebounded from its 52-week low and closed about 1.9% higher today.
The stock is currently up 0.4% to $14.21 per share in after-hours trading shortly after its earnings report was released.
GameStop:
Beat earnings estimates. The company posted adjusted earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.96. GameStop’s earnings estimates were trending lower in the three months prior to today’s report. The Zacks Consensus had slipped more than 5 cents within this timeframe.
Beat revenue estimates. The company saw revenue figures of $3.50 billion, beating our consensus estimate of $3.25 billion. Total revenues were up 15% from the year-ago period.
Comparable store sales growth reached 12.2% in the quarter. Comps in the U.S. gained 14.2%, while international comps growth touched 8.3%. New hardware sales increased 44.8%, led by demand for Nintendo Switch.
GameStop also said that digital sales and non-GAAP digital receipts increased 41.0% and 16.1%, respectively, excluding the fourth quarter 2016 revenues from Kongregate which was sold in July 2017.
“Our strong sales performance over the holiday period and throughout the fourth quarter was driven by compelling Black Friday and holiday promotions, driving growth in hardware, particularly the Nintendo Switch,” said CEO Mike Mauler.
GameStop expects total sales for fiscal 2018 to decline in the range of 2% to 6%. Comparable store sales are expected to be flat to down 5%. Adjusted earnings per share is expected to fall in the range of $3.00 to $3.35. The Zacks Consensus Estimate was calling for earnings of $3.32 ahead of the report.
Here’s a graph that looks at GameStop’s recent earnings performance:
GameStop Corp. is the world's largest video game and entertainment software retailer. The company operates retail stores across the United States and in fifteen countries worldwide. The company also operates two e-commerce sites, GameStop.com and EBgames.com, and publishes Game Informer magazine, a leading multi-platform video game publication.
Check back later for our full analysis on GME’s earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
Image: Bigstock
GameStop (GME) Posts Earnings Beat, Comps Surge 12%
GameStop Corp. (GME - Free Report) just released its latest quarterly financial results, posting adjusted earnings of $2.02 per share and revenues of $3.5 billion.
Currently, GME is a Zacks Rank #4 (Sell), but that could change based on today’s results. GameStop shares had slumped nearly 35% ahead of this report date. However, the stock has rebounded from its 52-week low and closed about 1.9% higher today.
The stock is currently up 0.4% to $14.21 per share in after-hours trading shortly after its earnings report was released.
GameStop:
Beat earnings estimates. The company posted adjusted earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.96. GameStop’s earnings estimates were trending lower in the three months prior to today’s report. The Zacks Consensus had slipped more than 5 cents within this timeframe.
Beat revenue estimates. The company saw revenue figures of $3.50 billion, beating our consensus estimate of $3.25 billion. Total revenues were up 15% from the year-ago period.
Comparable store sales growth reached 12.2% in the quarter. Comps in the U.S. gained 14.2%, while international comps growth touched 8.3%. New hardware sales increased 44.8%, led by demand for Nintendo Switch.
GameStop also said that digital sales and non-GAAP digital receipts increased 41.0% and 16.1%, respectively, excluding the fourth quarter 2016 revenues from Kongregate which was sold in July 2017.
“Our strong sales performance over the holiday period and throughout the fourth quarter was driven by compelling Black Friday and holiday promotions, driving growth in hardware, particularly the Nintendo Switch,” said CEO Mike Mauler.
GameStop expects total sales for fiscal 2018 to decline in the range of 2% to 6%. Comparable store sales are expected to be flat to down 5%. Adjusted earnings per share is expected to fall in the range of $3.00 to $3.35. The Zacks Consensus Estimate was calling for earnings of $3.32 ahead of the report.
Here’s a graph that looks at GameStop’s recent earnings performance:
GameStop Corp. Price, Consensus and EPS Surprise
GameStop Corp. Price, Consensus and EPS Surprise | GameStop Corp. Quote
GameStop Corp. is the world's largest video game and entertainment software retailer. The company operates retail stores across the United States and in fifteen countries worldwide. The company also operates two e-commerce sites, GameStop.com and EBgames.com, and publishes Game Informer magazine, a leading multi-platform video game publication.
Check back later for our full analysis on GME’s earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
See This Ticker Free >>