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GameStop (GME) Reports Q3: Everything You Need To Know Ahead Of Earnings

StockStory - Tue Dec 5, 2023

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Video game retailer GameStop (NYSE:GME) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter GameStop reported revenues of $1.16 billion, up 2.4% year on year, beating analyst revenue expectations by 2%. It was a good quarter for the company, with a beat of analysts' EPS and revenue estimates.

Is GameStop buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting GameStop's revenue to decline 0.4% year on year to $1.18 billion, improvement on the 8.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

GameStop Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at GameStop's peers in the specialty retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Best Buy Co's revenues decreased 7.8% year on year, missing analyst estimates by 1.4% and Bath and Body Works reported revenue decline of 2.6% year on year, exceeding estimates by 0.4%. Best Buy Co traded down 2.3% on the results, and Bath and Body Works was flat on the results.

Read our full analysis of Best Buy Co's results here and Bath and Body Works's results here.

There has been positive sentiment among investors in the specialty retail segment, with the stocks up on average 13.4% over the last month. GameStop is up 26.1% during the same time, and is heading into the earnings with analyst price target of $13, compared to share price of $17.1.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.

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