Zacks’ analyst wrote, “GameStop’s first-quarter 2012 earnings of $0.54 per share came in line with the Zacks Consensus Estimate, but dropped 3.6% from the prior-year quarter. Total revenue also declined 12.2% reflecting dismal hardware and software sales, whereas comparable-store sales fell 12.5%. The company holds a significant position in the used video game products market, which has been resilient in this downturn. Management reiterated earnings guidance of $3.10 to $3.30 per share and projects comps to remain flat or decline 5% during fiscal 2012. Consumers’ increasing accessibility to video games and PC entertainment software over the Internet could hit the sales of packaged goods and used games, and impede future growth. Consequently, GameStop continues to branch out and transformed as a mixed retailer of physical and digital gaming and electronics products. Digital category remains strong, reflecting a revenue growth of 23%. The company’s venture in digital, iDevice and gaming tablet businesses would be accretive.”
Shares of GameStop Corp traded up 1.05% during mid-day trading on Tuesday, hitting $19.18. GameStop Corp has a one year low of $18.13 and a one year high of $28.66. The company has a market cap of $2.532 billion and a P/E ratio of 7.93.
GameStop Corp last issued its quarterly earnings data on Thursday, May 17th. The company reported $0.54 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.54. The company’s revenue for the quarter was down 12.2% on a year-over-year basis. On average, analysts predict that GameStop Corp will post $0.42 earnings per share next quarter.
GME has been the subject of a number of other recent research reports. Analysts at Needham & Company reiterated a “hold” rating on shares of GameStop Corp in a research note to investors on Monday. Separately, analysts at Goldman Sachs (NYSE: GS) reiterated a “neutral” rating on shares of GameStop Corp in a research note to investors on Friday. Finally, analysts at Caris & Company downgraded shares of GameStop Corp from a “buy” rating to an “average” rating in a research note to investors on Friday. They now have a $20.00 price target on the stock, down previously from $34.00.
GameStop Corp. (GameStop) is a retailer of video game products and personal computer (PC) entertainment software.