Aug. 22, 2014, 9:15 AM
Aug. 21, 2014, 5:56 PM
- Strong Xbox One/PS4 sales fueled a 124.8% Y/Y FQ2 increase in GameStop's (NYSE:GME) new hardware sales to $332.3M (19% of revenue), which in turn drove the company's big revenue beat. Comparable store sales rose 21.9%.
- New software sales +15.6% Y/Y to $497M; pre-owned value game sales +5.5% to $558M; game accessories +17% to $107.5M; digital +6% to $52.3M; mobile/consumer electronics +85.1% to $112.1M.
- A mix shift towards hardware led gross margin to fall 260 bps Y/Y to 31.8%. SG&A spend fell to 27.5% of revenue from 30.5%. $75.5M was spent on buybacks.
- GameStop expects FQ3 EPS of $0.58-$0.64 (above a $0.57 consensus), with comp. sales growth of 1%-5%. FY14 EPS guidance of $3.40-$3.70 is being maintained for now (consensus is already up to $3.67); 6%-12% full-year comp. sales growth is expected.
- FQ2 results, PR
Aug. 21, 2014, 5:35 PM
Aug. 21, 2014, 4:04 PM
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
Apr. 4, 2014, 7:07 AM
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
Mar. 18, 2014, 9:13 AM
Mar. 18, 2014, 9:13 AM
- Shares of GameStop (GME) drop in early trading after Wal-Mart announces it will launch a used video game exchange program.
- GameStop's used game business is vital to the company as it generates higher margins than the new game model. That could get trickier with the retail beast from Bentonville in the mix.
- GME -5.5% premarket
- Shares of Best Buy (BBY) are down 0.6% as the company also has a little skin in the used game market.
Mar. 5, 2014, 9:50 AM
Feb. 25, 2014, 10:13 AM
Jan. 21, 2014, 12:36 PM| Comment!
Jan. 15, 2014, 10:41 AM
- GameStop (GME +0.7%) is defended at Sterne Agee with a reiterated Buy rating on the firm's belief that new consoles will reach the 50M level by 2015 to support the company's business model.
- The dismantling of shares of GameStop yesterday was based on the premise that although Xbox One and PlayStation 4 gaming consoles sold well, consumers are buying fewer older-model games than anticipated in a trend that cuts deeply into profit margins.
- Sterne takes the long view that the new console cycle still sets up GameStop well as gamers reload and sees the sell-off as bringing GME's valuation back to an attractive entry point.
- The investment firm did reign in its lofty price target a bit, reducing it to $52 from $58.
GME vs. ETF Alternatives
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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