GameStop Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component GameStop (NYSE:GME) will unveil its latest earnings on Thursday, November 15, 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 32 cents per share, a decline of 17.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 41 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 33 cents during the last month. Analysts are projecting profit to rise by 9.4% versus last year to $3.14.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 16 cents per share against a mean estimate of profit of 14 cents. The company fell in line with estimates in the first quarter.

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A Look Back: In the second quarter, profit fell 32% to $21 million (16 cents a share) from $30.9 million (22 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 11.1% to $1.55 billion from $1.74 billion.

Stock Price Performance: Between August 16, 2012 and November 9, 2012, the stock price rose $4.11 (22.9%), from $17.98 to $22.09. The stock price saw one of its best stretches over the last year between May 21, 2012 and May 29, 2012, when shares rose for six straight days, increasing 3.8% (+73 cents) over that span. It saw one of its worst periods between January 25, 2012 and February 2, 2012 when shares fell for seven straight days, dropping 6.9% (-$1.73) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.79 billion in revenue this quarter, a decline of 8.2% from the year-ago quarter. Analysts are forecasting total revenue of $9.01 billion for the year, a decline of 5.7% from last year’s revenue of $9.55 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.17 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: There are mostly holds on the stock with nine of 17 analysts surveyed giving that rating.

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

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