Video game retailer GameStop (NYSE: GME) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
GameStop missed analysts’ revenue expectations by 13.2% last quarter, reporting revenues of $1.28 billion, down 28.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS 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 14.5% year on year to $754.2 million, improving from the 28.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at GameStop’s peers in the specialty retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Best Buy posted flat year-on-year revenue, meeting analysts’ expectations, and Sportsman's Warehouse reported revenues up 2%, topping estimates by 4.6%. Best Buy traded down 7.4% following the results while Sportsman's Warehouse was up 11.3%.
Read our full analysis of Best Buy’s results here and Sportsman's Warehouse’s results here.
There has been positive sentiment among investors in the specialty retail segment, with share prices up 3.4% on average over the last month. GameStop is up 5.7% during the same time and is heading into earnings with an average analyst price target of $13.50 (compared to the current share price of $29.64).
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