GameStop (NYSE: GME ) is expected to report Q3 earnings on Nov. 15. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict GameStop's revenues will contract -7.9% and EPS will contract -17.9%.
The average estimate for revenue is $1.79 billion. On the bottom line, the average EPS estimate is $0.32.
Last quarter, GameStop booked revenue of $1.55 billion. GAAP reported sales were 11% lower than the prior-year quarter's $1.74 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.16. GAAP EPS of $0.16 for Q2 were 27% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 33.5%, 230 basis points better than the prior-year quarter. Operating margin was 2.2%, 90 basis points worse than the prior-year quarter. Net margin was 1.4%, 40 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $9.02 billion. The average EPS estimate is $3.14.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 2,889 members out of 3,188 rating the stock outperform, and 299 members rating it underperform. Among 718 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 625 give GameStop a green thumbs-up, and 93 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GameStop is outperform, with an average price target of $25.46.
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