Gamestop: Here’s What Investors Need to Know Before Earnings

Gamestop (NYSE:GME) will report earnings before markets open on Thursday, May 23rd. GameStop Corporation operates specialty electronic game and PC entertainment software stores throughout the United States, Australia, Canada and Europe. The Company stores sell new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise.

Here is your Cheat Sheet to Gamestop Earnings:

Earnings Expectations: Analysts expect earnings of $0.40 per share on revenues of $1.84 billion.

Analyst Trends:

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 is a profit of $3.11, which is worse than the estimate ninety days ago.

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Earnings Trends:

Here’s how Gamestop has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 8,806 9,078 9,474 9,551 8,887
Diluted EPS ($) 2.38 2.25 2.65 2.41 -2.13

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 2,002.20 1,550.20 1,772.80 3,561.50
Diluted EPS ($) 0.54 0.16 -5.08 2.15

Past Performance:
Gamestop has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)