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Post-Earnings Recap and Analysis - GameStop

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LONDON, August 26, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings recap and analysis on GameStop Corporation (NYSE: GME). The company featured in the headlines on Thursday, August 21, 2014 after reporting results for the second quarter ended August 02, 2014. For Q2 FY14, GameStop Corp.'s diluted earnings per share rose 144.4% year-over-year and its total global sales increased 25.1% year-over-year. Our free coverage report can be accessed at:


Earnings Overview  

During Q2 FY14, GameStop Corp.'s same store sales grew by 21.9% from the year ago quarter. The company's net earnings for the second quarter rose 134.3% to $24.6 million, compared with $10.5 million in the prior year quarter. Meanwhile, the company's diluted earnings per share for the reported quarter stood at $0.22, compared with $0.09 in the year ago quarter. Analysts from Bloomberg were expecting the company to report net earnings of $22.41 million and diluted earnings per share of $0.18. For the quarter ended August 02, 2014, GameStop Corp.'s total global sales increased to $1.73 billion from $1.38 billion in the previous year quarter. The company's gross profit for the reported quarter increased to $550.9 million, compared with $481.4 million in Q2 FY13. Moreover, the company's non-GAAP digital receipts for the reported quarter increased 17.6% YoY to $179.2 million, or $52.3 million of sales on a GAAP basis, led by strong platform currency, mobile and global Steam Wallet sales. The free research on GME can be downloaded as in PDF format at:


For Q2 FY14, sales in GameStop Corp.'s Mobile & Consumer Electronics category surged 85.1%, led by the ongoing expansion and strong results of Spring Mobile and Simply Mac, while the company's Technology Brands segment contributed 19% of the company's second quarter operating profit. For the second quarter ended August 02, 2014, the company's new hardware sales increased 124.8%, led by worldwide demand for Microsoft's Xbox One and Sony's PlayStation 4.

During the second quarter of 2014, the company repurchased 1.90 million shares at an average price of $39.67 per share, worth $75.5 million of stock. Currently, the company has a balance of $329.4 million on its existing repurchase authorization. GameStop Corp.'s board of directors declared a quarterly cash dividend of $0.33 per common share payable on September 16, 2014, to shareholders of record as of the close of business on September 03, 2014. 

Rob Lloyd, Chief Financial Officer of GameStop Corp., stated in the recent press release that the company's second quarter results demonstrate the power of the new console cycle and all of the company's business units, including technology brands, made a positive contribution to the company's sales and profits. He added that the second half of the year is filled with exciting games and products coming to market and the company is confident and prepared to capitalize on these opportunities. Sign up and read the free analyst's notes on GME at:


In its guidance for Q3 FY14, the Grapevine, Texas-based electronic store operator is expecting comparable store sales growth in the range of 1.0% to 5.0%. The company's diluted earnings per share are expected to range from $0.58 to $0.64, representing flat to 10.3% increase over the previous year quarter. For FY 2014, GameStop Corp. is upholding its previously announced full year diluted earnings per share guidance range of $3.40 to $3.70. Meanwhile, the company' full year comparable store sales are expected to increase in the range of 6.0% to 12.0%.

Stock Performance    

On Friday, August 22, 2014, a day after the earnings release, shares in GameStop Corp. surged 5.95% to end the session at $42.90. On the last close, Monday, August 25, 2014, the stock declined 1.14% to end the session at $42.41. The company's stock vacillated between $41.88 and $43.58 during the session. A total of 3.46 million shares were traded, which was above its three months average volume of 2.71 million shares. Over the previous three trading sessions, the company's shares have advanced 2.61%. However, in the last one month and from the beginning of 2014, the stock has fallen by 7.16% and 13.91%, respectively. GameStop Corp.'s shares are trading above their 50-day and 200-day moving averages of $41.48 and $41.56, respectively. Furthermore, the stock traded at a PE ratio of 12.72 and has a Relative Strength Index (RSI) of 56.36. Visit Investor-Edge and access the latest research on GME at:


Sneak Peek to Corporate Insider Trading  

In the last one month, GameStop Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on GME is available at:


About Investor-Edge.com 

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1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

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Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.


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