GameStop Corp. Fourth Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component GameStop Corp. (NYSE:GME) will unveil its latest earnings on Thursday, March 22, 2012. GameStop operates as a retailer of video game products and PC entertainment software. It sells video game hardware, software and accessories, and PC entertainment software.

GameStop Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.72 per share, a rise of 10.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.73. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.72 during the last month. For the year, analysts are projecting profit of $2.86 per share, a rise of 7.1% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported net income of 39 cents per share versus a mean estimate of profit of 39 cents per share. In the second quarter, the company beat estimates by one cent.

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Wall St. Revenue Expectations: Analysts predict a rise of 0.8% in revenue from the year-earlier quarter to $3.72 billion.

Analyst Ratings: Analysts are optimistic about this stock, with nine analysts rating it as a buy, one rating it as a sell and five rating it as a hold.

A Look Back: In the third quarter, profit fell 1.5% to $53.9 million (39 cents a share) from $54.7 million (36 cents a share) the year earlier, meeting analyst expectations. Revenue rose 2.5% to $1.95 billion from $1.9 billion.

Key Stats:

The company’s net income has fallen in the last two quarters. Net income dropped 23.4% in the second quarter.

Revenue rose in the third quarter after seeing a drop the quarter before. In the second quarter, revenue fell 3.1%.

Stock Price Performance: Between December 19, 2011 and March 16, 2012, the stock price rose $1.04 (4.6%), from $22.52 to $23.56. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 11.7% (+$2.66) over that span. It saw one of its worst periods between July 5, 2011 and July 18, 2011 when shares fell for 10 straight days, dropping 14.5% (-$3.95) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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