GameStop Gets Some of Its Mojo Back

Consumer Electronics

Published: May 22, 2014 4:29 pm

Last Updated: April 27, 2020 9:52 pm

GameStop Corp. (NYSE: GME) reported first quarter 2014 results after markets closed on Thursday. The video game retailer posted diluted earnings per share (EPS) of $0.59 on $2 billion in revenues. In the same period a year ago, the video game retailer reported EPS of $0.46 on revenue of $1.87 billion. First-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.57 and $2.03 billion in revenue.

The company guided second quarter diluted EPS to a range of $0.12 to $0.20 compared with EPS of $0.09 in the year-ago quarter. The consensus estimate for the second quarter is $0.17. For the full year, GameStop reaffirmed its adjusted diluted EPS estimate of $3.40 to $3.70. The consensus estimate for full-year EPS is currently $3.68.

Same-store sales rose 5.8% in the first quarter compared with the same period a year. In the second quarter GameStop estimates same-store sales will rise 12% to 19% and full year same-store sales are expected to rise by 6% to 12%, consistent with the previous estimate.

The company’s CEO said:

The next-gen console business is meeting our targets, our digital properties continue to grow and our new tech brands segment is positively contributing to our profitability.

New software sales were down 20.4 % year-over-year while sales of used and value software rose 5.3%. Continued strong sales of the Xbox One from Microsoft Corp. (NASDAQ: MSFT) and the PlayStation 4 from Sony Corp. (NYSE: SNE) boosted new hardware sales 81.1% year-over-year.

The company has already announce that it plans to close 132 of its more than 6,600 stores in 2014.

Shares are up about 1.7% in after-hours trading, at $36.88 in a 52-week range of $25.25 to $57.74. Thomson Reuters had a consensus analyst price target of around $50.20 before today’s results were announced.

ALSO READ: Sony PlayStation 4 Sales Top 7 Million

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