GameStop Corp. (NYSE: GME) is set to report its fourth-quarter financial results after the markets close on Thursday. Thomson Reuters has consensus estimates of $2.16 in earnings per share (EPS) on $3.62 billion in revenue. In the same quarter of the previous year, the company reported $1.90 in EPS and revenue of $3.60 billion.
The company previously reiterated its guidance for the fourth quarter when it reported its third-quarter earnings. The outlook for the quarter was $2.08 to $2.24 in EPS, and same-store sales are expected to range from -5.0% to +2.0%. At that time, this guidance was below estimates.
Looking at the chart, the last earnings report caused shares to fall off a cliff, down roughly 13% to $37.52 from $43.14. Back in November 24/7 Wall St. mentioned that this could be an opportunity for investors to buy the dip, expecting that the company could turn it around in the holiday season. Since that time shares have recovered to current prices, but this earnings report will be a key factor in the direction of shares.
For the past two settlement dates, it appears that short sellers have been gearing up for the company. On March 13 settlement date, GameStop saw its short interest rise to 24.3 million with 5.1 days to cover, compared to 21.2 million with 5.2 days to cover on the previous settlement date. Since the mid-February settlement date, short interest has risen approximately 25%.
ALSO READ: Americans Are Finally Making More Money, and 3 Retail Stocks Will Benefit
In the days ahead of earnings, GameStop has received a few analyst calls:
- B. Riley reiterated a Buy rating with a price target of $64, implying upside of 63%.
- Oppenheimer maintained a Buy rating with a price target of $45, an upside of almost 10%.
- Credit Suisse had a Hold rating with a price target of $42.
The stock movement has been practically immaterial for both the 50- and 200-day moving averages.
Shares of GameStop were down 2.3% at $38.89 late Thursday morning. The stock has a consensus price target of $47.37 and a 52-week trading range of $31.69 to $46.59.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.