GameStop (NYSE:GME) will release its quarterly earnings report on Tuesday, 2024-12-10. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate GameStop to report an earnings per share (EPS) of $-0.03.
The announcement from GameStop is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.10, leading to a 11.98% drop in the share price the following trading session.
Here's a look at GameStop's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | -0.09 | -0.09 | 0.29 | -0.08 |
| EPS Actual | 0.01 | -0.12 | 0.22 | 0 |
| Price Change % | -12.0% | -39.0% | -15.0% | 10.0% |
Performance of GameStop Shares
Shares of GameStop were trading at $29.06 as of December 06. Over the last 52-week period, shares are up 90.93%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Opinions on GameStop
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding GameStop.
A total of 1 analyst ratings have been received for GameStop, with the consensus rating being Underperform. The average one-year price target stands at $10.0, suggesting a potential 65.59% downside.
Peer Ratings Overview
In this analysis, we delve into the analyst ratings and average 1-year price targets of and Best Buy Co, three key industry players, offering insights into their relative performance expectations and market positioning.
- The consensus outlook from analysts is an Buy trajectory for Best Buy Co, with an average 1-year price target of $105.27, indicating a potential 262.25% upside.
Summary of Peers Analysis
Within the peer analysis summary, vital metrics for and Best Buy Co are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| GameStop | Underperform | -31.41% | $248.80M | 0.52% |
| Best Buy Co | Buy | 1.69% | $2.19B | 8.82% |
Key Takeaway:
GameStop is at the bottom for Revenue Growth and Gross Profit, while its peers are showing positive growth. GameStop's Return on Equity is significantly lower compared to its peers. Overall, GameStop's performance is weaker compared to its peers in all key metrics analyzed.
Discovering GameStop: A Closer Look
GameStop Corp is a U.S. multichannel video game, consumer electronics, and services retailer. The company operates across Europe, Canada, Australia, and the United States. GameStop sells new and second-hand video game hardware, physical and digital video game software, and video game accessories, mainly through GameStop, EB Games, and Micromania stores and international e-commerce sites. The majority of sales are from the United States.
Breaking Down GameStop's Financial Performance
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: GameStop's revenue growth over a period of 3 months has faced challenges. As of 31 July, 2024, the company experienced a revenue decline of approximately -31.41%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: GameStop's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 1.85%, the company may face hurdles in effective cost management.
Return on Equity (ROE): GameStop's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.52%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): GameStop's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.36%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.12.
To track all earnings releases for GameStop visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
