What to Expect From GameStop Earnings

By Chris Lange Updated Jan 12, 5:31PM EST · Published Nov 22, 10:09AM EST

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What to Expect From GameStop Earnings — © Thinkstock

GameStop Corp. (NYSE: GME) is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday. The consensus estimates from Thomson Reuters are calling for $0.47 in earnings per share (EPS) and $1.99 billion in revenue. The same period from last year had $0.54 in EPS and $2.02 billion in revenue.

Leading Wall Street analysts feel that hardware updates and the holiday release slate this year should help the gaming segment. In addition, the second-half hardware refreshes and fourth-quarter high-quality product releases could help drive traffic to the stores.

The stock has been crushed since a very negative third-quarter pre-announcement, as well as ongoing difficult trends. Merrill Lynch lowered its price target but kept a Buy rating, given the valuation at current levels is very cheap and noting that the headwinds the company faces are fully disclosed. With a big dividend yield, and the fourth-quarter holiday season underway, a rebound is quite possible.

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A few analysts weighed in on GameStop ahead of earnings:

Merrill Lynch has a Buy rating with a $37 price target.
Wedbush has a Buy rating with a $30 price target.
Baird reiterated an Outperform rating with a $25 price target.
Telsey Advisory Group has an Outperform rating with a $30 price target.
Piper Jaffray has a Neutral rating with a $23 price target.
Macquarie reiterated an Outperform rating with a $36 price target.
SunTrust Banks reiterated a Buy rating.

Excluding Tuesday’s move, GameStop has underperformed the broad markets with the stock down 16% year to date.

Shares of GameStop were last trading up over 1% at $23.83, with a consensus analyst price target of $26.61 and a 52-week trading range of $20.10 to $38.23.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.