FMP

FMP

Enter

GameStop Corp. (NYSE:GME) Surpasses Earnings Expectations but Misses on Revenue

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Google Images

  • GameStop Corp. (NYSE:GME) reported an unexpected EPS of $0.01, beating the anticipated loss.
  • The company's revenue was $798.3 million, missing the expected figure and indicating a decline from the previous year.
  • Valuation metrics reveal a high P/E ratio of 213.20 and a P/S ratio of 2.20, highlighting investor expectations and financial positioning.

GameStop Corp. (NYSE:GME) recently reported its financial results for the second quarter, revealing an unexpected earnings per share (EPS) of $0.01, which surpassed the anticipated loss of -$0.085. This performance indicates a significant turnaround from the previous year's loss of $0.03 per share, showcasing a positive shift in the company's financial health. The reported earnings represent a substantial 200% earnings surprise compared to expectations, marking a notable improvement from the previous quarter's -20% surprise when GameStop posted a loss of $0.12 per share against an expected loss of $0.10.

Despite this earnings surprise, GameStop's revenue for the quarter was $798.3 million, missing the expected $895.67 million and falling short by 11.30% compared to the Zacks Consensus Estimate. This revenue figure also represents a decline from the previous year's $1.16 billion, continuing GameStop's struggle to meet consensus revenue estimates over the past four quarters. The sales breakdown by segment showed declines across Hardware and Accessories, Software, and Collectibles, indicating widespread challenges in sales performance.

GameStop's financial health is further illuminated by its valuation metrics. The company's price-to-earnings (P/E) ratio stands at approximately 213.20, suggesting a high valuation compared to its earnings. Additionally, the price-to-sales (P/S) ratio of about 2.20 indicates that investors are paying $2.20 for every dollar of sales, while the enterprise value to sales (EV/Sales) ratio of approximately 1.39 shows the company's valuation in relation to its sales after adjusting for debt. These metrics, along with a debt-to-equity (D/E) ratio of about 0.12, highlight GameStop's financial positioning and investor expectations.

Despite the mixed financial results, GameStop's stock performance has seen a significant increase of more than 30% in 2024, buoyed by earlier spikes in its share price. This reflects investor optimism and the market's reaction to the company's strategic moves and financial outcomes. However, the absence of financial guidance for the upcoming periods and the decision not to hold an earnings call add a layer of uncertainty about GameStop's future outlook.

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 16, 2024 8:06 PM - Gordon Thompson

Deutsche Bank Upgrades AST SpaceMobile to Buy Amid Legal Challenges

On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was trading at $4.03. This decision was accompanied by an increase in the price target for AST SpaceMobile, raised to $22 from $19, as detailed in a ...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep