GameStop Corp. (NYSE: GME) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Tuesday. Consensus estimates are calling for $1.58 in earnings per share (EPS) and $3.28 billion in revenue. The same period of last year reportedly had $2.02 in EPS and $3.5 billion in revenue.
Earlier this quarter, GameStop announced that it has found a new chief executive officer. This comes amidst a potential proxy fight from activist firms and a slowly declining stock. The question is, can this new CEO turn things around for the embattled gaming company?
The board of directors has appointed George Sherman as chief executive and member of the board, effective April 15, 2019. Sherman will succeed Shane Kim, who has served as interim CEO since May 2018 and as a director since July 2011. Most recently, Sherman served as CEO of Victra, the largest exclusive authorized retailer for Verizon Wireless products and services.
Excluding Tuesday’s move, GameStop had underperformed the broad markets, with its stock down 18% year to date. In the past six months, the stock was down over 33%.
A few analysts weighed in on GameStop ahead of the report:
- Wedbush has a Buy rating and a $15 price target.
- Jefferies has a Hold rating with a $12 price target.
- Merrill Lynch has an Underperform rating with a $9 target.
- Credit Suisse has an Underperform rating with an $11 target.
- Loop Capital has a $12 price target.
Shares of GameStop were last seen down 2% at $10.13, with a 52-week range of $10.04 to $17.27. The stock has a consensus analyst price target of $12.00.
24/7 Wall St.Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
