GameStop (GME) Q3 Earnings Report Preview: What To Look For
Video game retailer GameStop (NYSE:GME) will be reporting results this Tuesday after market hours. Here’s what to look for. GameStop beat analysts’ revenue expectations by 18.1% last quarter, reporting revenues of $972.2 million, up 21.8% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates. Is GameStop a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, analysts are expecting GameStop’s revenue to grow 14.8% year on year to $987.3 million, a reversal from the 20.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share. GameStop Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at GameStop’s peers in the specialty retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Best Buy delivered year-on-year revenue growth of 2.4%, beating analysts’ expectations by 1%, and Ulta reported revenues up 12.9%, topping estimates by 5.2%. Best Buy traded up 7.1% following the results while Ulta was also up 11.9%. Read our full analysis of Best Buy’s results here and Ulta’s results here. There has been positive sentiment among investors in the specialty retail segment, with share prices up 8.9% on average over the last month. GameStop is up 7% during the same time. When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.