GameStop Earnings: Here’s Why the Stock is Rising Now
GameStop Corp. (NYSE:GME) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.73%.
GameStop Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 14.81% to $0.46 in the quarter versus EPS of $0.54 in the year-earlier quarter.
Revenue: Decreased 6.85% to $1.87 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: GameStop Corp. reported adjusted EPS income of $0.46 per share. By that measure, the company beat the mean analyst estimate of $0.4. It beat the average revenue estimate of $1.84 billion.
Quoting Management: Paul Raines, chief executive officer, stated, “GameStop’s continuing margin expansion, growing new businesses and market share gains are the results of executing our strategic plan. We look forward to capitalizing on the upcoming new console cycle.”
Key Stats (on next page)…
Revenue decreased 47.63% from $3.56 billion in the previous quarter. EPS decreased 78.7% from $2.16 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.21 to a profit $0.08. For the current year, the average estimate has moved down from a profit of $3.42 to a profit of $3.11 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)