Aug. 19, 2014, 10:32 AM| Comment!
Aug. 15, 2014, 1:26 PM
- GameStop (GME -5.6%) trades lower after NPD Group data for July shows a drop in video game sales at brick-and-mortar stores.
- The company reports earnings on August 21.
- What to watch: Execs are likely to be questioned during the earnings conference call on what the expected impact on margins is of the company paying out more for used game trade-ins. It could be a tough sale that the development is positive.
Aug. 15, 2014, 9:08 AM
- Video games sales fell 15% Y/Y in July, according to data from the NPD Group. The tally is for sales at physical retail outlets such as GameStop (NYSE:GME), Best Buy (NYSE:BBY), and Target (NYSE:TGT).
- The comparable to last year was impacted by a dispute between the NCAA and student athletes which prompted Electronic Arts (NASDAQ:EA) to stop producing its popular NCAA football series amid the legal dispute.
Jul. 18, 2014, 2:07 PM
- After rising 57% Y/Y in May due to new game launches, U.S. retail physical game sales fell 3% in June to $286.8M, per NPD. But with June 2013 having a stronger launch title lineup, that figure was better than expected. Sales were also still up over 4% from a May level of $274M.
- Ubisoft's (OTCPK:UBSFY) Watch Dogs was the top-selling title for the second month in a row. Electronic Arts' (EA +3.1%) UFC (launched on June 3) was #4, and FIFA 14 (receiving a World Cup boost) was #5. Titanfall (#8 in May) fell out of the top-10.
- Activision's (ATVI +1.2%) Call of Duty: Ghosts rose 2 spots to #8. But The Amazing Spider-Man 2 (#6 in May) dropped out of the top-10.
- Take-Two's (TTWO +4.1%) NBA 2K14 (boosted by playoff interest) rose a spot to #6, and GTA V came in at #10. Nintendo's (OTCPK:NTDOY) Mario Kart 8 and Tomodachi Life were respectively #2 and #9.
- With the help of Microsoft's cheaper Xbox One package, hardware sales rose 106% Y/Y to $292.7M. Together with the software numbers, that's providing a lift to GameStop (GME +4.4%).
- EA reports on July 22, while Activision and Take-Two both report on August 5.
Jun. 17, 2014, 8:54 AM| Comment!
May. 22, 2014, 4:22 PM
- Earnings of $68M up 24.5% Y/Y, with EPS of $0.59 up 28.3%.
- Comp store sales up 5.8% from a year ago, with new hardware sales up 81.1%. New software sales fell 20.4%, but pre-owned/value software sales rose 5.3%.
- Non-GAAP digital receipts up 9.5%.
- 1.33M shares repurchased during Q at average price of $39.28 each. $405M remains on repurchase authorization. Float is about 115M shares.
- Q2 comp store sales growth guidance of 12-19%, with EPS expected at $0.12-$0.20 (Street is at $0.17), representing a 33-122% increase over one year ago. Full year EPS guidance of $3.40-$3.70 and comp store sales growth guidance of 6-12% is maintained.
- CC at 5 ET
- Previously: GameStop beats by $0.02, misses on revenue
- GME +1.8% AH
May. 22, 2014, 4:10 PM
May. 21, 2014, 5:35 PM
May. 19, 2014, 2:16 PM
- GameStop (GME +1.2%) announces a relaunch of it digital distribution channel for PC games.
- The company says the download process is now significantly easier for gamers.
- A special promotion will by run by GameStop for two weeks in which select game downloads from major publishers will deeply discounted.
May. 16, 2014, 2:43 PM
- Though available only on the Xbox One/360 and PCs for now, Electronic Arts' (EA +2.1%) Titanfall was the bestselling game in U.S. physical retail channels for the second month in a row, per NPD's April numbers. Strong Titanfall sales have already fueled EA's big calendar Q1 beat.
- Activision's (ATVI +0.7%) Call of Duty: Ghosts rebounded to #2 on NPD's list after coming in at #4 in March. Another Activision title, The Amazing Spider-Man 2, landed at #8.
- Take-Two's (TTWO +0.9%) NBA 2K14 rose to #3 from #7 as the playoffs arrived. Grand Theft Auto V came in at #9.
- Total physical retail game sales fell 10% Y/Y, as gamers direct more spending towards next-gen consoles (hardware sales rose 76%) and digital channels. But the figure represents an improvement from March's 27% decline.
- One encouraging piece of data for the next-gen console cycle: NPD states PS4/Xbox One game sales are up 40% relative to PS3/Xbox 360 sales over their first 6 months of availability.
- Game developers are ticking higher a couple days after selling off in response to Take-Two's soft calendar Q2 guidance, as is GameStop (GME +0.5%).
May. 13, 2014, 2:13 PM
- GameStop (GME +3%) trades higher after Microsoft announces it will offer a cheaper version of the Xbox One without the Kinect.
- Store traffic at GameStop could get a mild boost if thrifty gamers take to the Kinect-free Xbox.
- Another bullish note from Oppenheimer is also helping to boost sentiment. This time around the firm calls GameStop one of the "most under-appreciated EPS growth/upside stories" in the hardlines category. Shares are rated Outperform still.
May. 2, 2014, 1:34 PM
- Joel Greenblatt's screen looks to find stocks with high "earnings yield" - a high ratio of profits to enterprise value. Companies are further screened for a strong return on capital. When a stock scores well with both criteria, it's usually a good company being undervalued by investors.
- For picking individual stocks, there are probably better methods, but as a group, Magic Formula names have vastly outperformed the broad market.
- Although defense names have done well over the past couple of years, the Magic Formula continues to identify Northrop Grumman (NOC +0.2%), General Dynamics (GD +1.4%), and Raytheon (RTN +0.6%) as attractive. Firearm names Smith & Wesson (SWHC +0.8%) and Sturm Ruger (RGR +0.3%) also make the cut.
- A number of videogame makers show up as well: Take-Two (TTWO +0.3%), Activision Blizzard (ATVI +0.2%), GameStop (GME +2.8%), and the struggling recent IPO King Digital (KING -0.3%).
- Not too surprisingly, the Magic Formula also continues to like plenty of big-cap tech names: Cisco (CSCO -0.2%), CA, Inc. (CA -0.5%), Microsoft (MSFT -0.5%), Hewlett-Packard (HPQ -0.5%), and Apple (AAPL +0.1%).
- Hardly market laggards, media names like Time Warner (TWX -0.8%), Viacom (VIA +1.4%), Omnicom Group (OMC), and Starz (STRZA +2.3%) also show up on the list, as do struggling multi-level marketers and for-profit education stocks: HLF, NUS, APOL, ESI, CPLA.
- Punished by investors for not being as hot as they once were, Coach (COH +0.2%), Francesca' Holdings (FRAN +0.1%), and Gap (GPS -1.3%) are Magic Formula picks today.
Apr. 9, 2014, 6:55 PM
- While much of the attention in recent weeks has been on high-flying momentum stocks falling back to earth, there’s also been a big rally among many of the stocks with largest short positions.
- Rallies in heavily shorted stocks are being driven by hedge funds pulling back on all their stock positions, so as bullish positions in high-growth stocks have been ditched, short positions have been closed out as well.
- Among the top 10 most shorted stocks, seven have rallied over the last month - with four up by double-digit percentages - even as the S&P 500 has dropped 0.8%: GameStop (GME, +11.5%), US Steel (X, +13.9%), Joy Global (JOY, +7.2%), ADT (ADT, -0.9%), VeriSign (VRSN, -8.6%), Essex Property Trust (ESS, +0.6%), Quest Diagnostics (DGX, +13.1%), Microchip Technology (MCHP, +2.8%), Western Union (WU, -1.9%), Frontier Communications (FTR, +13.6%).
Apr. 4, 2014, 7:07 AM
Mar. 28, 2014, 8:18 AM
- Execs with GameStop (GME) disclosed during the firm's earnings call that the company plans to open 300 to 400 retail locations which will have a focus outside of games.
- The specialty store concepts include Simply Mac, Apple specialty stores, Spring Mobile ATT dealer stores, and Aio Cricket AT&T prepaid stores.
- The new stores will also sell electronics products such as wearable technology devices.
- Previous: GameStop to reduce video game store count by 2%.
- Earnings call transcript
Mar. 27, 2014, 8:45 AM
- GameStop (GME) reports comparable-store sales rose 7.8% in FQ4 as console launches drove traffic.
- As expected, the company saw its mix of new video game hardware jump higher. On the software side, new video games accounted for 33% of sales and pre-owned titles made up 20.1% of sales. Profit on pre-owned titles was flat compared to a year ago while profit from new games was 13% lower.
- GameStop announces it expects to lower its video game store count by approximately 2% this year.
- FY14 EPS guidance is set at $3.40-$3.70 by GameStop vs. $3.76 consensus.
- GME -5.4% premarket
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Gamestop Corp is a multichannel video game retailer. It sells new and pre-owned video game hardware, physical and digital video game software, accessories, as well as PC entertainment software, new and pre-owned mobile and consumer electronics products.
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