GameStop (GME) missed the Zacks Consensus Estimate of $0.25 per share with quarterly earnings of $0.22. This compares to $0.16 per share last year. Adjusted for non-recurring items
This quarterly profit surprise is -12%. This video game retailer surprised everyone by posting break-even results a quarter ago, instead of a $0.12 loss per share. Three times in the last four quarters, the company exceeded consensus EPS projections.
GameStop missed the Zacks Consensus Estimate by 10.32% with $1.79 billion in revenues for the quarter ending January 2024. Revenues were $2.23 billion last year. Only once in the last four quarters has the company topped consensus revenue projections.
Management's earnings call commentary will determine whether the stock's quick price movement based on recently published figures and future earnings estimates will last. Since January, GameStop shares have fallen 13.8% while the S&P 500 has gained 9.4%.
Given GameStop's underperformance this year, investors wonder what's ahead for the stock? The company's profits outlook can assist investors answer this important question, but there are no easy answers. This includes current consensus earnings predictions for the coming quarter(s) and their recent changes.
Near-term market fluctuations and earnings estimate revisions are strongly correlated, according to empirical studies. Investors can track earnings estimate revisions themselves or use the Zacks Rank, which has a proven track record of doing so.
Before this earnings release, GameStop estimate revisions were mixed. After the company's earnings report, estimate revisions may alter, but the stock has a Zacks Rank #3 (Hold). The shares should follow the market in the foreseeable future. See all today's Zacks #1 Rank (Strong Buy) stocks here. It will be fascinating to observe how quarter and fiscal year estimates adjust. A consensus EPS estimate is -$0.05 on $1 billion in revenues for the future quarter and $0.04 on $5 billion for the current fiscal year.
Investors should be aware that industry outlook can affect stock performance. Zacks ranks Retail - Consumer Electronics in the top 37% of 250+ sectors. Our analysis reveals that the top 50% of Zacks-ranked sectors beat the bottom 50% by more than 2 to 1. Conn's (CONN), another industry stock, hasn't reported January 2024 earnings.
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