Brokerages Anticipate GameStop Corp. (GME) to Announce $1.62 EPS

Brokerages expect GameStop Corp. (NYSE:GME) to report earnings per share (EPS) of $1.62 for the current quarter, according to Zacks Investment Research. Three analysts have provided estimates for GameStop’s earnings. The lowest EPS estimate is $1.56 and the highest is $1.66. GameStop reported earnings of $2.02 per share during the same quarter last year, which indicates a negative year-over-year growth rate of 19.8%. The firm is expected to announce its next earnings results on Wednesday, March 27th.

On average, analysts expect that GameStop will report full year earnings of $2.80 per share for the current financial year, with EPS estimates ranging from $2.66 to $3.08. For the next fiscal year, analysts forecast that the firm will report earnings of $2.35 per share, with EPS estimates ranging from $1.70 to $2.92. Zacks’ earnings per share calculations are an average based on a survey of analysts that follow GameStop.

GameStop (NYSE:GME) last issued its earnings results on Thursday, November 29th. The company reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.11. The firm had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.03 billion. GameStop had a negative net margin of 6.45% and a positive return on equity of 15.72%. The business’s revenue was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.54 earnings per share.

A number of research analysts recently weighed in on GME shares. Wedbush set a $19.00 price objective on shares of GameStop and gave the company a “buy” rating in a research report on Friday, September 7th. Jefferies Financial Group set a $18.00 price objective on shares of GameStop and gave the company a “buy” rating in a research report on Wednesday, September 5th. TheStreet downgraded shares of GameStop from a “c” rating to a “d+” rating in a research report on Friday, November 30th. Zacks Investment Research upgraded shares of GameStop from a “sell” rating to a “hold” rating in a research report on Wednesday, August 22nd. Finally, Loop Capital restated a “hold” rating and set a $16.00 price objective on shares of GameStop in a research report on Monday, September 10th. One analyst has rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $15.13.

A number of hedge funds have recently made changes to their positions in the business. Metropolitan Life Insurance Co. NY increased its holdings in GameStop by 12.0% during the second quarter. Metropolitan Life Insurance Co. NY now owns 32,677 shares of the company’s stock valued at $476,000 after buying an additional 3,496 shares during the last quarter. Raymond James & Associates increased its holdings in GameStop by 22.0% during the second quarter. Raymond James & Associates now owns 21,982 shares of the company’s stock valued at $320,000 after buying an additional 3,959 shares during the last quarter. Oppenheimer & Co. Inc. increased its holdings in GameStop by 43.2% during the second quarter. Oppenheimer & Co. Inc. now owns 14,750 shares of the company’s stock valued at $215,000 after buying an additional 4,450 shares during the last quarter. Laurel Wealth Advisors Inc. increased its holdings in GameStop by 36.8% during the third quarter. Laurel Wealth Advisors Inc. now owns 17,285 shares of the company’s stock valued at $263,000 after buying an additional 4,650 shares during the last quarter. Finally, United Services Automobile Association increased its holdings in GameStop by 11.7% during the second quarter. United Services Automobile Association now owns 51,583 shares of the company’s stock valued at $752,000 after buying an additional 5,406 shares during the last quarter. 98.72% of the stock is owned by institutional investors and hedge funds.

Shares of GameStop stock opened at $12.76 on Friday. The company has a market cap of $1.30 billion, a P/E ratio of 3.82 and a beta of 1.17. GameStop has a twelve month low of $12.14 and a twelve month high of $20.31. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.30 and a current ratio of 1.10.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 21st. Investors of record on Tuesday, December 11th will be given a dividend of $0.38 per share. The ex-dividend date is Monday, December 10th. This represents a $1.52 dividend on an annualized basis and a yield of 11.91%. GameStop’s dividend payout ratio (DPR) is 45.51%.

About GameStop

GameStop Corp. operates as a multichannel video game, consumer electronics, and wireless services retailer. It operates in five segments: United States, Canada, Australia, Europe, and Technology Brands. The company sells new and pre-owned video game hardware; video game software; pre-owned and value video games; video game accessories, including controllers, gaming headsets, virtual reality products, memory cards, and other add-ons; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards, and digitally downloadable software.

See Also: Price to Earnings Ratio (PE), For Valuing Stocks

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