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What The Street Has Said About GameStop

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What The Street Has Said About GameStop

GameStop Corp. (NYSE: GME) reports Q1 results following the market close Thursday.

The company has guided EPS at $0.57 on revenue of $1.986 billion. The Estimize consensus expected EPS of $0.58 on revenue of $2.039 billion, in line with the Wall Street consensus of EPS at $0.58 on revenue of $2.035 billion.

The stock was surging ahead of its earnings release and recently traded at $41.00, up 3.88 percent.

Below are highlights from analysts ahead of earnings along with ratings and price targets.

Credit Suisse analyst Seth Sigman - Neutral, $42 price target

“Q1 industry software growth of +4% (vs. -1% in Q4) is in line with GME's mid-single digit software outlook for 2015. We believe GME enjoyed strong market share in April given the concentration of titles, which supports our high single digit software growth estimate for GME (constant currency basis). Meanwhile, Q1 hardware came in better than we had anticipated initially, at -6% (vs. -14% in Q4), as current gen console sales held up well and there was upside from the new DS. For GME, we estimate hardware down 10% (constant currency basis). Our $0.60 EPS estimate is one penny ahead of the Street, and at the high end of guidance, embedding 3% total comps/ 20 bps of EBIT margin improvement.”

Piper Jaffray analyst Michael J. Olson - Overweight, $47 price target

“We expect results in-line with consensus for EPS of $0.59 on $2.02B. Looking forward, we anticipate revenue guidance for FY15 to remain modestly below Street estimates (EPS of $3.82 on revenues of $9.55B) due in part to GameStop EPS guidance not including share repurchases and, therefore, EPS outlook is typically below consensus. For the company's SSS guidance, we expect it will remain relatively unchanged at the previous +1% to +6% range. FY15 estimates may prove low, however, as assumptions appear conservative in the midst of a faster than expected uptake of next gen consoles, which is triggering a renewed growth phase for software.”

Oppenheimer analyst Brian Nagel - Outperform, $45 price target

"We have conservatively trimmed our Q1 (Apr.) EPS forecast to $0.59 from $0.62 to align with Street figures and management guidance. Our new FY16 (Jan. 2017) and FY17 (Jan. 2018) forecasts of $4.65 and $5.25 (previously $4.80 and $5.35) still assume healthy and largely under-appreciated cyclical growth potential for GME [...] The NPD Group recently indicated that Apr. sales of video gaming software rose 13% year-on-year driven in large part by a 200% year-on-year gain in sales of new-generation software. in Feb. and Mar. year-on-year growth rose +84% and +58%.”

Wedbush analyst Michael Pachter - Outperform, $50 price target

“Our current estimates are for revenue of $2,066 million, sales growth of 3.5%, comps of up 4.0%, and EPS of $0.59, versus consensus for revenue of $2,006 million and EPS of $0.58, and guidance for sales growth of down 2% to up 1%, comps of up 2.5 – 5.5%, and EPS of $0.53 – 0.60 [...] Q2 guidance is likely to be below consensus. Q2 has difficult software comparisons, and our revenue and EPS estimates are well below consensus. We expect y-o-y declines, while our competitors expect roughly flat y-o-y results. GameStop shares may react negatively to a below consensus guide.”

Latest Ratings for GME

DateFirmActionFromTo
Oct 2020JefferiesDowngradesBuyHold
Sep 2020Telsey Advisory GroupUpgradesMarket PerformOutperform
Sep 2020JefferiesUpgradesHoldBuy

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Posted-In: Brian Nagel Credit Suisse Michael J. Olson Michael PachterAnalyst Color Previews Analyst Ratings Trading Ideas Best of Benzinga

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