Anticipated Outcomes
GameStop, the video game retail giant, is set to release its second-quarter results on Tuesday. The company's WKN is A0HGDX.
Analysts expect a three percent increase in GameStop's revenue to $823 million for the second quarter, a significant improvement from the $5.2 million in the prior-year period. Earnings per share are projected to jump from $0.01 to $0.16, marking a substantial increase from the year-ago quarter.
However, the anticipated earnings may not provide much upward momentum for GameStop's stock. Analysts predict an eight percent drop in GameStop's revenue for the current year, to $3.5 billion. Despite the projected decline, operating income is expected to surge 533 percent for the current year, to $229 million. Net income for the year is expected to reach $357 million, up from $131 million last year, and earnings per share for the current year are projected to be $0.73, compared to $0.33 in the previous year.
The second quarter's results are expected to show revenue of approximately $562 million, earnings per share around $0.85 to $0.88, and overall profit increases that beat prior estimates of $0.16 per share. EBIT specifics are not detailed, but net income growth and positive earnings surprises are anticipated.
In the first quarter, GameStop failed to meet investor expectations. After releasing its first-quarter results in June, GameStop's stock took a dive and has since been stuck in a sideways range. Investors are likely to stay on the sidelines with GameStop's meme stock, according to the current outlook.
The main challenge for GameStop in the first quarter was persistent issues in physical game sales. The company's core business revenue growth is being closely monitored.
GameStop's WKN is A0HGDX.
