GameStop Earnings Jump on Margin Growth; Fiscal Year Forecast Raised

Retail

Published: August 27, 2015 4:31 pm

Last Updated: April 27, 2020 9:52 pm

GameStop Corp. (NYSE: GME) reported second-quarter 2015 results after markets closed on Thursday. The video game retailer posted diluted earnings per share (EPS) of $0.31 on $1.76 billion in revenues. In the same period a year ago, the company reported EPS of $0.22 on revenue of $1.73 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.25 and $1.74 billion in revenue.

For the third quarter of its fiscal year, GameStop forecasts a same-store sales increase in the range of 1% to 4% and diluted EPS of $0.53 to $0.60. Last year the company posted EPS of $0.57 in the third quarter.

For the full year, GameStop raised its adjusted diluted EPS estimate of from a prior range of $3.63 to $3.83 to a new range of $3.66 to $3.86. Full-year same-store sales are now expected to improve by 2% to 7% for the year. Guidance for the current quarter and the full year includes only the effect of share repurchases through the end of the second quarter.

Consolidated same-store sales rose 8.1% in the second quarter compared with the same period a year. Same-store sales rose nearly 22% in the year-ago quarter.

The company’s CEO said:

During the second half of the year, we anticipate momentum in our core gaming business with the launch of several AAA titles, complementing growth in our pre-owned segment being fueled by a continuing shift to next-gen products. We also expect Technology Brands and collectibles products to contribute meaningful profits for the balance of the year.

New software sales declined 6% year over year, while sales of used and value software rose 0.5%. New hardware sales declined 2.2% year over year. Mobile and consumer electronics sales rose 26.9%.

Shares traded up about 4.3% in after-hours trading Thursday, at $48.20 in a 52-week range of $31.69 to $47.83. Thomson Reuters had a consensus analyst price target of $48.34 before the results were announced.

ALSO READ: 10 Stocks That Have Ignored the Recent Massive Sell-Off

In 20 Years, I Haven’t Seen A Cash Back Card This Good

After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.

A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.

Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.