Business was brisk at video retailer GameStop
Then again, analysts have been humbled by sticking to the company's conservative guidance in the past. GameStop has trounced expectations by double-digit percentage differences in each of the first three fiscal quarters of the year.
GameStop is on a roll. Preliminary fourth-quarter same-store sales are a whopping 17.4% higher than the previous year's holiday showing. It certainly didn't hurt that Sony
The upgrade cycle is also likely to benefit GameStop's used gear business. The company is a popular hub for buying used games and systems from gamers and then reselling them at higher margins than its firsthand gear.
The gains aren't only on the hardware front. With concert simulations becoming all the rage, Viacom's
So it shouldn't surprise anyone to see GameStop raise the ante, even as the iffy economy trips up more conventional retailers. The real challenge now is to guess how much higher GameStop's profits will be when it reports come mid-March.
GameStop, Nintendo, and Activision have been recommended to Stock Advisor subscribers. Microsoft is an Inside Value selection. Want to play the game for free? A 30-day trial subscription is available for either service.
Longtime Fool contributor Rick Munarriz loves playing video games but he doesn't own shares in any companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.