Is it Game-Over for GameStop?

(Photo Credit: Mike Mozart)

GameStop Corp.

Consumer Discretionary - Special Retail

GameStop Corp. (GME) has their FQ1’18 results scheduled to be released today after the bell. Estimize predicts an EPS of $0.39 while Wall Street predicts an even lower EPS of $0.35, an 11% difference. From a revenue perspective, Estimize predicts a quarterly revenue of $2.0B while the Street predicts a revenue of $1.957B. The Estimize consensus projects a -38% EPS YoY growth rate, and a -2% revenue YoY growth rate. Comparable Store Sales are expected to come in at 1.97%, which is slightly higher than last quarter’s expectation of 1.40%.

GameStop Corp. announced poor guidance for FY18, and investors are pessimistic about the tonight’s impending results. The demand for pre-owned video games and hard-copy games are declining, and GameStop’s profit outlook is worsening. GameStop’s financial standing will be hard to properly measure until the holiday season when it does most of its sales.