GameStop (GME) Reports Q2: Everything You Need To Know Ahead Of Earnings
Video game retailer GameStop (NYSE:GME) will be announcing earnings results tomorrow after market close. Here’s what to expect.
GameStop missed analysts’ revenue expectations by 11.4% last quarter, reporting revenues of $881.8 million, down 28.7% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.
Is GameStop a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GameStop’s revenue to decline 23% year on year to $895.7 million, a reversal from the 2.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GameStop has missed Wall Street’s revenue estimates six times over the last two years.
Looking at GameStop’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Best Buy’s revenues decreased 3.1% year on year, meeting analysts’ expectations, and Dick's reported revenues up 7.8%, topping estimates by 1.1%. Best Buy traded up 14.3% following the results while Dick's was down 7.5%.
Read our full analysis of Best Buy’s results here and Dick’s results here.
Investors in the specialty retail segment have had steady hands going into earnings, with share prices flat over the last month. GameStop is up 9.2% during the same time and is heading into earnings with an average analyst price target of $11 (compared to the current share price of $23.89).
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