GameStop Corp. (GME) - NYSE
  • Wed, May 18, 10:08 AM
    • Retail stocks are lower than broad market averages after Target (TGT -9.3%) sets a gloomy tone on U.S. consumer spending. There was a sense of bewilderment from Target in its release and earnings call commentary over the slowdown in sales post-Easter.
    • Wal-Mart is down an even 3% to reach a multi-month low ahead of tomorrow's earnings report.
    • Shares of Best Buy (NYSE:BBY) are 3.2% lower after the soft read from Target tilts sentiment. The electronics chain reports earnings on May 24 with analysts expecting revenue of $8.291B and EPS of $0.35 to be disclosed.
    • Other chain store stocks reeling after the Target release are Conn's (CONN -0.1%), hhgregg (HGG -2.4%), Sears Holdings (SHLD -3.1%), GameStop (GME -1.6%), Bon-Ton Stores (BONT -2.3%), Dollar Tree (DLTR -2.1%), Big Lots (BIG -2.4%), Dollar General (DG -1.5%), Citi Trends (CTRN -7.4%), and PriceSmart (PSMT -2.9%).
    • Previously: Investors edgy over retail stocks after Target disappoints (May 18)
    • Previously: Target stung by low traffic trend (May 18)
    | Wed, May 18, 10:08 AM | 5 Comments
  • Tue, Apr. 19, 5:28 PM
    • Global Payments (GPN -0.4%) has risen 1.5% after hours on news it's heading into the S&P 500, replacing GameStop (NYSE:GME).
    • The game retailer is changing places with Global Payments and heading into the MidCap 400, as Global Payments' market cap will be more reflective of the 500 after its acquisition of Heartland Payment Systems.
    • Those moves are effective after the close on Friday. In addition, Krispy Kreme Doughnuts (NYSE:KKD) is up 3.9% after hours, replacing Pinnacle Entertainment (NASDAQ:PNK) in the SmallCap 600, as Pinnacle is heading for a spinoff/merger.
    • Now read Has A Window Opened To Acquire A Great Acquirer In Global Payments? »
    | Tue, Apr. 19, 5:28 PM | 1 Comment
  • Wed, Apr. 13, 11:48 AM
    | Wed, Apr. 13, 11:48 AM | 8 Comments
  • Mon, Mar. 28, 1:07 PM
    | Mon, Mar. 28, 1:07 PM
  • Mon, Mar. 28, 9:15 AM
    | Mon, Mar. 28, 9:15 AM | 10 Comments
  • Mon, Mar. 28, 8:39 AM
    • Sterne Agee CRT warns on GameStop (NYSE:GME) in a new note to investors.
    • The investment firm thinks the company's guidance for flat growth in the pre-owned games business is too aggressive. A single-digit decline sounds more likely to analyst Arvind Bhatia.
    • The question mark over preowned growth is somewhat critical with the category accounting for 38% of gross profit last year for GameStop.
    • GME -6.51% premarket to $28.30 after posting results last Thursday post-close. The most notable item from the report was the soft FQ1 guidance issued (-4% to -7%).
    • Previously: GameStop beats by $0.15, misses on revenue (March 24)
    • Previously: GameStop falls after mixed results, soft guidance (March 24)
    | Mon, Mar. 28, 8:39 AM
  • Thu, Mar. 24, 5:38 PM
    • Top gainers, as of 5.25 p.m.: FR +3.5%. DRD +2.9%. TNK +2.8%. CONN +2.3%. HOLX +2.0%.
    • Top losers, as of 5.25p.m.: GME -5.5%. MT -5.3%. WMC -4.8%. FDC -4.5%. GBX -4.2%.
    | Thu, Mar. 24, 5:38 PM | 8 Comments
  • Thu, Mar. 24, 4:30 PM
    • In addition to missing FQ4 sales estimates (while beating on EPS), GameStop (NYSE:GME) is guiding for FQ1 revenue to be down 4%-7% Y/Y, below a consensus for 1.3% growth. Net income is expected to drop to $60.5M-$66M from the year-ago period's $73.8M ($0.68/share). That suggests EPS will be below a $0.71 consensus. Same-store sales are expected to be down 7%-9% Y/Y.
    • FY16 (ends Jan. '17) guidance is for 0%-3% sales growth (compares with a 2.8% consensus) and net income of $407M-$423M (compares with FY15's $415.6M). Consensus has been for EPS to rise to $4.09 from FY15's $3.90. Same-store sales are expected to be flat to down 3%. The FY16 capex budget is at $160M-$170M.
    • Top-line performance: Same-store sales rose 3.1% Y/Y in FQ4 (3% in the U.S., 3.3% elsewhere), after having dropped 1.1% in FQ3. New video game hardware, video game accessory, digital, mobile/consumer electronics and "other" (e.g. collectibles) revenue rose. New video game software sales fell, and pre-owned sales were flat.
    • Financials: Lifting FQ4 EPS: Gross margin rose to 150 bps Y/Y to 29.6%. Also helping: $50M was spent to buy back 1.6M shares, leading total FY15 repurchases to amount to $202M (5.22M shares). Hurting EPS: SG&A spend was 17.4% of revenue, up from 15.8% a year ago.

      GameStop ended FQ4 with $450M in cash, $350M in debt, 1,036 "Technology Brand" stores, and 35 collectibles stores. Merchandise inventories stood at $1.16B, up slightly Y/Y.
    • Shares are down 5.6% after hours to $28.57.
    • GameStop's FQ4 results, earnings release
    | Thu, Mar. 24, 4:30 PM | 8 Comments
  • Thu, Mar. 3, 11:00 AM
    • S&P Ratings drops its outlook on GameStop (GME +3.5%) to a Negative stance after having a Stable view on the retailer.
    • The ratings agency reaffirms a BB+ rating on GameStop's senior notes.
    • S&P on GME: "The negative outlook on GameStop reflects our expectation for deteriorating credit metrics as a result of the company's increasingly aggressive financial policy."
    • Some positive comments from Telsey Advisory Group are helping to support GameStop's share price today. Telsey's $38 PT on GameStop is also a positive factor.
    | Thu, Mar. 3, 11:00 AM | 3 Comments
  • Thu, Jan. 14, 1:19 PM
    • Best Buy (BBY -9.2%) fell to a 52-week low after the company's report on holiday sales failed to please investors.
    • The retailer's weak performance in key categories seems to have added another layer of anxiety to trading around GameStop (GME -5.6%) which is also at a 52-week low.
    • Hhgress (HGG) dropped below the $2 mark to set a 52-week low.
    • Brick-and-mortar mainstay Barnes & Noble (BKS +1.6%) etched out a new 52-week low this morning before recovering.
    • Previously: Best Buy lower after holiday numbers underwhelm (Jan. 14 2016)
    | Thu, Jan. 14, 1:19 PM
  • Dec. 29, 2015, 8:22 AM
    • Shares of GameStop (NYSE:GME) are on watch after Pacific Crest calls the retailer the "big holiday loser" of the season.
    • The investment firm notes that weak holiday traffic reinforces the negative impact of digital channels on the GameStop business model.
    • Pac Crest recommends that investors stay on the sidelines with GameStop.
    • GameStop closed at $28.49 yesterday vs. a 52-week range of $27.90 to $47.83. In a bullish view, SA contributor Josh Arnold thinks the +5% yield on GameStop provides a backstop for investors.
    | Dec. 29, 2015, 8:22 AM | 1 Comment
  • Dec. 11, 2015, 9:58 AM
    • GameStop (GME -4.4%) is down sharply in early trading after fresh NPD data is released.
    • Total videogame sales were up 2% to $2.47B in November, although software sales actually fell 7% to $1.02B during the month. Higher promotional activity in the form of bundling may have factored in to the software sales slip.
    • Earlier this week, there were some concerns over a promotion run by GameStop on the Star Wars Battlefront game.
    • GameStop bear Pacific Crest was quick to pile on today. "Investors always wondered when GameStop would really break; this could be that moment," noted the firm.
    • GameStop trades at a forward price-to-earnings ratio of 7.6 and a price-to-sales ratio of 0.36.
    • Previously: Electronic Arts down 5% after GameStop cuts Star Wars: Battlefront's price (updated) (Dec. 09 2015)
    | Dec. 11, 2015, 9:58 AM | 12 Comments
  • Dec. 11, 2015, 9:16 AM
    | Dec. 11, 2015, 9:16 AM
  • Dec. 10, 2015, 5:36 PM
    • Top gainers, as of 5.25 p.m.: FNSR +11.7%. SUNE +10.3%. TERP +5.7%. ADBE +5.4%. RH +4.7%.
    • Top losers, as of 5.25p.m.: UDF -7.8%. JBLU -3.2%. NDSN -3.2%. NRG -3.2%. GME -2.6%.
    | Dec. 10, 2015, 5:36 PM | 5 Comments
  • Dec. 9, 2015, 1:26 PM
    • GameStop (GME -2.4%) has cut the price of a new physical copy of Electronic Arts' (NASDAQ:EA) Star Wars: Battlefront by $20 to $40. Other major retailers are still selling the game for $60 or close to it.
    • The move comes shortly after GameStop exec Tony Bartel stated initial Battlefront sales were disappointing. "We're not going to quantify it in terms of actual numbers, but we had high expectations that diminished somewhat as it got closer and it failed to hit those lowered expectations." GameStop plunged last month in response to weak FQ3 results and FQ4 guidance.
    • EA COO Peter Moore disputed Bartel's take. "There is no weakness that is perceptible yet in the title and I want everybody understand that based on where we think this title is and based on the marketing beats ahead of us, in particular the movie launch over the next two weeks, we feel very comfortable we're going to hit the numbers we've given analysts, investors and Wall Street alike."
    • However, CFO Blake Jorgensen has admitted Battlefront may not appeal to some hardcore gamers. "We had designed it to be a much more accessible product to a wide age group. So, an eight-year-old could play with his father on the couch, as well as a teenager or 20-year-old could play the game and enjoy it. It is more accessible. And for the hardcore, it may not have the depth that they wanted in the game." The game currently has a Metacritic rating of 72/100, and a Metacritic user rating of just 5.0/10.
    • EA is off sharply on a day the Nasdaq is down 1.8%. Piper recently argued EA investors should focus on the company's FY17 (ends March '17) game pipeline rather than Battlefront's performance.
    • Update (2:03PM ET): Macquarie's Ben Schachter is defending EA. "While the stock is trading down today on the news, we believe this is a pre-planned GME price cut in conjunction with EA to support the retail sales of the game for the holidays. We note that the same holiday price drops occurred with EA’s Battlefield 4 and Battlefield 3 ... We do not see the price change as underlying weakness in the title, and still expect our previous estimate of 13m units in FY’16." EA is now down 5.6%.
    | Dec. 9, 2015, 1:26 PM | 13 Comments
  • Nov. 24, 2015, 9:30 AM
    | Nov. 24, 2015, 9:30 AM | 2 Comments
Company Description
GameStop Crop. operates as a multichannel video game, consumer electronics and wireless services retailer, which offers customers the most popular games, hardware and game accessories for next generation video game systems and the PC. The company sells new and pre-owned video game hardware,... More
Sector: Services
Industry: Electronics Stores
Country: United States