Gamestop Pops Following Q1 Beat

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Gamestop

shares are trading higher by $3.32 at $44.24 in Friday's session. The catalyst for the rally is the Q1 beat for EPS ($0.68 vs. Est. $0.59) and for revenues ($2.061B vs. Est. $2.01B). Also, the company forecasts Q2 EPS at ($0.21-$0.25) and raised full year guidance from $3.60-$3.80 to $3.63-$3.83). Finally, Q1 comps were 8.6 percent vs. $3.6 estimate. The Street reacted immediately to the good news by rallying the issue to $45. That represents the highest level for the issue since it peaked at $44.84 in November. So far, in the regular session, it has found resistance ahead of that level only reaching $44.49 before swooning to $43.12. Following the quick sell off, buyers came right back into the nudged it back into the $44 handle but has not been able to make a new high. For the year Gamestop has outperformed the market as it is higher by 30 percent compared with the S&P 500' s gain of 2.66 percent.