GameStop Third-Quarter Earnings Take a Nose Dive, Stock Follows
If you've invested in GameStop stocks, you might want to check out the news. I'll give you a hint -- it's not good.
Even though new records in sales are being purported monthly for games and consoles, one of the biggest gaming retailers, GameStop, is falling behind in revenue when compared to last year. Venutrebeat reports that the hard numbers show that GameStop is down 0.7 percent with $2.09 billion in revenue and earnings per share of 50 cents during the third quarter. Last year, the company earned $2.11 billion and this year, Wall Street estimated GameStop would earn $2.2 billion with an earnings per share of 61 cents.
This all boils down to GameStop's stock price being dropped down to around 13 percent, pushing its price from $43.87 to $38.76. Despite this, GameStop has a game plan and reports that most of its internal numbers are looking up.
In response to all of this, GameStop chief executive officer Paul Raines said, "Overall, most of our major product categories performed very well." Raines went on to bring up Assassin's Creed: Unity's move out of October as one of the reasons its third-quarter results were impacted. The company also brings up the fact that although its overall third-quarter sales were down, its hardware sales were up 147.4 percent and its codes and digital content sales were up 52.4 percent from its third-quarter last year.
GameStop plans to bring in earnings between $3.40 per share and $3.55 for the next quarter as well as an annual growth of between 13.5 percent and 18.5. Its overall game plan is to "[focus] on relentlessly applying [its] competitive advantages [which includes] convenience, strong [consumer relationships], knowledgeable associates, and value through our unique forms of currency, which include buy-sell-trade and the new PowerUp Rewards credit card, to deliver a successful quarter."
Will you be helping out GameStop with its fourth-quarter earnings? You can check out its upcoming Black Friday deals on its website and prepare your wallets for the upcoming holiday season.