Categories Earnings, Retail, Technology

Earnings Preview: GameStop to report Q3 2018 results in high hopes after recent ratings upgrade

Video game retailer GameStop Corp (GME) is expected to post third-quarter earnings after trading closes on Thursday, Nov. 29. The market expects earnings of $0.56 per share on revenue of $2.04 billion.

On Monday, Nov 26, GameStop jumped 9% in early morning trade on Cyber Monday hopes, backed by an analyst upgrade from Bank of America Merrill Lynch.

Bank of America Merrill Lynch lifted the stock to NEUTRAL from UNDERPERFORM as it banked on the retailer’s ability to do good on Cyber Monday.

“Even with free cash flow dwindling to under $100 million by 2020, for now there is ample cash for capital return and we see less risk to the dividend which yields 11%,” read the analyst report.

With Sony (SNE) PlayStation and Microsoft (MSFT) Xbox console platforms, along with PC gaming shifting to digital downloading and eSports, physical games have taken a hit. And this is the core business of GameStop.

Shares have tumbled more than 70% in the past five years, and the retailer has repositioned itself to memorabilia and collectibles along with more offers in order to boost sales.

Last quarter, gaming hardware and accessories were the saving grace of GameStop in sales. But given how the retailer is pushing to find new ways to get back its customer base, we’ll be on the lookout for new strategies and specific improvement in sales metrics as it posts results on Thursday.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Lennar (LEN) believes that despite near-term challenges, the long-term prospects for housing remain strong

Shares of Lennar Corporation (NYSE: LEN) were down 3% on Monday. The stock has dropped 36% year-to-date and 25% over the past 12 months. The homebuilder delivered mixed results for

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Add Comment
Viewing Highlight