GameStop First 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, May 17, 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 analyst estimate is for net income of 53 cents per share, a decline of 5.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down. It has risen from 52 cents during the last month. Analysts are projecting profit to rise by 11.5% versus last year to $3.20.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of $1.73 per share versus a mean estimate of $1.72. Two quarters ago, it reported net income of 39 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.07 billion in revenue this quarter, a decline of 9.2% from the year-ago quarter. Analysts are forecasting total revenue of $9.59 billion for the year, a rise of 0.4% from last year’s revenue of $9.55 billion.

Analyst Ratings: Analysts are bullish on this stock, with eight analysts rating it as a buy, one rating it as a sell and six rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 26.5% to $174.7 million ($1.25 a share) from $237.8 million ($1.55 a share) the year earlier, but exceeded analyst expectations. Revenue fell 3.1% to $3.58 billion from $3.69 billion.

Key Stats:

The company has seen decreases in net income for the last three consecutive quarters. Net income fell 1.5% in the third quarter of the last fiscal year and 23.4% in the second quarter of the last fiscal year.

Revenue fell in the fourth quarter of the last fiscal year after seeing a rise the quarter before. In the third quarter of the last fiscal year, revenue rose 2.5%.

Stock Price Performance: Between March 15, 2012 and May 11, 2012, the stock price had fallen $3.48 (-14.6%), from $23.81 to $20.33. 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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