GameStop (NYSE: GME) is expected to report Q2 earnings on Aug. 16. 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 compress -8.4% and EPS will decrease -31.8%.
The average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is $0.15.
Revenue details
Last quarter, GameStop reported revenue of $2.00 billion. GAAP reported sales were 12% lower than the prior-year quarter's $2.28 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, EPS came in at $0.54. GAAP EPS of $0.54 for Q1 were 3.6% lower than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 30.0%, 280 basis points better than the prior-year quarter. Operating margin was 5.7%, about the same as the prior-year quarter. Net margin was 3.6%, 10 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $9.25 billion. The average EPS estimate is $3.16.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,897 members out of 3,195 rating the stock outperform, and 298 members rating it underperform. Among 692 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 598 give GameStop a green thumbs-up, and 94 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 $29.33.
Can your retirement portfolio provide you with enough income to last? You'll need more than GameStop. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add GameStop to My Watchlist.
