Will GameStop post yet another earnings miss in Q2?

Sep. 06, 2022 3:17 PM ETGameStop Corp. (GME)By: Jessica Kuruthukulangara, SA News Editor56 Comments

Retail Trader Favorite Gamestop Reports Quarterly Earnings

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Video game retailer GameStop (NYSE:GME) is scheduled to announce Q2 results on Wednesday, Sept. 7, after market close.

Consensus EPS estimate is -$0.41 (+46.1% Y/Y) and consensus revenue estimate is $1.27B (+7.6% Y/Y).

Over the last 2 years, GME has beaten EPS estimates 38% of the time and revenue estimates 50% of the time.

Consumer videogame spending slipped 13% Y/Y in Q2 as the industry grappled with tough comparisons and high inflation curbing consumer spending. Data from NPD Group showed that hardware sales fell 1%, while accessory sales dropped 11%.

GME in Jul. implemented a 4-for-1 stock split. Wedbush Securities said it had no economic impact and post-split shares remain at levels disconnected from the business' fundamentals.

GME's NFT Marketplace saw over 5K ETH in trading volume and $7.2M in value since its launch, according to data gathered by CoinDesk.

GME said it would significantly reduce its headcount and terminated previous CFO Michael Recupero's employment, Axios reported. Recupero was replaced by chief accounting officer Diana Saadeh-Jajeh.

The meme stock rose after GME's Q1 earnings. Jefferies noted GME's progress with increased customer focus, offering depth, competitive pricing and improved fulfillment speed.

SA contributor Daniel Jones in a bearish analysis said GME is fundamentally a mess, and is drastically overvalued by investors and speculators.

GME, which fell 34% YTD, has been exceptionally volatile, with a 52-week trading range of $19.40-$63.92.

The stock underperformed the Dow Jones U.S. specialty retailers and S&P 400 consumer discretionary indexes in the last 1 year.

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