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GameStop Posts Fair Earnings but is Optimistic on Upcoming Console Releases

  +Follow August 22, 2013 2:09PM
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Retailers in general are moving away from physical media towards the digital model, as companies like Best Buy Co. Inc (BBY) devote less and less floor space to CDs and DVDs and Redbox operator Outerwall Inc. ($OUTR) desperately scramble to branch out into other services. It looked like used video game retailer GameStop Corp (GME) was no different, and would likewise have to adapt or wither away.

A superficial look at their second quarter profits from 2013 suggests they are indeed going the way of the Blockbuster Video. In their second quarter 2013 earnings report, the game retailer revealed profits fell 50 percent for the company. Additionally, same store sales dropped 11 percent, suggesting the sea change to digital is indeed killing the company.

However, GameStop beat earnings expectations, and revealed positive news on two fronts. Digital receipts for the company grew 17 percent. Also, the retailer voiced optimism concerning one area of physical media that can’t be replaced by digital. It’s an area where they expect to shine through the rest of the year: video game consoles.

According to the retailer, over half of gamers expect to buy a new console this year, and GameStop’s CEO Paul Raines expects “a lot of energy” in that industry that should prop up the company for the foreseeable future.

So while physical content might have rocky future, the release of consoles like Sony Corporation’s (SNE) Playstation 4 and Microsoft Corp.’s (MSFT) Xbox One should more than compensate. Indications from Microsoft and Sony seem to confirm this.

On Aug. 20 Sony said preorders for Playstation 4 had already topped a million, exceeding their own expectations. The company announced on Aug. 21 that the console will hit stores on Nov. 15.

Microsoft will release the anticipated Xbox One sometime in November. The tech giant previously reversed controversial gaming restrictions, which would have severely hampered the ability of GameStop to sell used games, which significantly invigorated the retailer’s outlook.

GameStop outlook continues to brighten. The retailer calls for earnings to increase significantly in the coming quarter, and expects same-store sales to rise between 11 and 15 percent.

For their second quarter 2013 earnings report, GameStop reported a net profit of $10.5 million, or $0.09 per share, versus the net profit of $21 million, or $0.16 per share, from the same period a year ago. Revenue for the quarter was $1.38 billion, as compared to $1.55 billion from the previous year. Analysts were expecting a profit of $0.05 per share on revenues of $1.36 billion.

GameStop is up 10.88 percent to hit $52.80 a share.

(image of GameStop courtesy of Wikimedia Commons)

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Results for GME
dailystockplays.com
26 Apr 15 15:03:23
Bullish Cross http://t.co/ti5ClrdMFw $COF $TRIP $GME $SGEN $GAME $HTS $DANOY $CBSH $PEGI $HAFC $PIE $CLSN $MOD $SCGLY $CBU $BKF $IDLV $LUKOY
Venky Srinivasan
26 Apr 15 08:30:03
"@FonsieTrader $GME Powerful Money Flow in this Breakout Candidate! Worth watching"
FonsieTrader
26 Apr 15 06:52:20
$GME Powerful Money Flow in this Breakout Candidate! Worth watching http://t.co/O5vXUfrU0C
Beverage Consulting
26 Apr 15 00:51:29
RT @SeekingAlpha: 401(K) Reconstructed: 2015 Q1 Review http://t.co/HvpV5pnsE5 $ABBV $BAX $CHD $COH $DLR $DOW $DPS $GILD $GIS $GME $KO $MAT …
Cameron Wilmot
26 Apr 15 00:43:38
.@CallofDuty: #BlackOps III should be due on November 6, 2015 $GME http://t.co/xd2UXXBJWZ http://t.co/ViIRHDw9eh
TweakTown
26 Apr 15 00:43:37
.@CallofDuty: #BlackOps III should be due on November 6, 2015 $GME http://t.co/HvUGruzq4E http://t.co/xUBLID1WP2
Venky Srinivasan
25 Apr 15 23:29:25
$GME A big cup and handle on Monthly timeframe.Earnings on May 21st. Finviz says short interest 43.26% & Div 3.63%. http://t.co/8D9IlmjsYW
Venky Srinivasan
25 Apr 15 23:22:48
$GME On Daily chart, slightly sloppy inverted head & shoulders measuring to approx 55.62. Bullish technicals. http://t.co/UHNni2FBYO
Venky Srinivasan
25 Apr 15 23:20:08
$GME Oh boy, this stock looks ready on multiple timeframes.
RC
25 Apr 15 13:45:50
Weekend Top 100 | http://t.co/gOfqtWfWND $AAPL $SIRI $FCX $JBLUE $GOOGL $BRCD $GD $KOS $WYNN HUM $LULU $GME
Stock Market Basics
24 Apr 15 22:09:09
RT @10Xtrading: 4 Great looking Golden Cross Patterns to get in on before the pop http://t.co/gJ6FOCwtBv $COF $TRIP $SGEN $GME
10X Trading
24 Apr 15 17:27:22
4 Great looking Golden Cross Patterns to get in on before the pop http://t.co/gJ6FOCwtBv $COF $TRIP $SGEN $GME
dailystockplays.com
24 Apr 15 16:11:06
Bullish Cross http://t.co/9gwrHvncfl $COF $TRIP $GME $SGEN $GAME $HTS $DANOY $CBSH $PEGI $HAFC $PIE $CLSN $MOD $SCGLY $CBU $BKF $IDLV $LUKOY
Capital Market Labs
24 Apr 15 13:58:38
$RCII vs. $ANF vs. $CONN vs. $GME Compared Across 9 Critical Measures http://t.co/RHITZL65S2 http://t.co/7MxnMEYEIU
Tactical Charts
24 Apr 15 13:54:52
RT @bespokeinvest: From our Weekly Chart Book: Downtrend for GameStop coming into play. https://t.co/om7i7fP0EL $GME http://t.co/gSBNUExRg0
Investing Insight
24 Apr 15 13:25:52
bespokeinvest: From our Weekly Chart Book: Downtrend for GameStop coming into play. https://t.co/4zE8ab28rm $GME http://t.co/I8YgAKjTWK
FinanzLinksUSA
24 Apr 15 13:25:35
RT @bespokeinvest: From our Weekly Chart Book: Downtrend for GameStop coming into play. https://t.co/om7i7fP0EL $GME http://t.co/gSBNUExRg0
Bespoke
24 Apr 15 13:22:24
From our Weekly Chart Book: Downtrend for GameStop coming into play. https://t.co/om7i7fP0EL $GME http://t.co/gSBNUExRg0
Media Sentiment
24 Apr 15 12:54:02
$GME received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 601
Market Int Center
24 Apr 15 12:51:06
GameStop $GME Showing Bullish Technicals ( http://t.co/XgQk69Slqr )
Harry Walkman
24 Apr 15 10:31:31
$GME GameStop Corp. Is an Investor's Final Fantasy http://t.co/Wfq7HrC09T
Daily Contracts
24 Apr 15 10:13:01
Real-Time feed of company contracts, original agreements and executive updates from $GME http://t.co/YwaRY20lr4
Alexander Morris
24 Apr 15 09:58:59
$GME: At 1DyHIGH=40.54, hits:2, ch:+0.5%, 0phNearHi, allTFs+, medFlt:105M, HiPctSht[43%:20d], PrvClGap+[+0.4%], DyVol:354T:0.4x:0.2x
StockNewsWires
24 Apr 15 09:45:02
$GME: Brokerage Perspectives on Gamestop Corporation (NYSE:GME): http://t.co/VikcxUrImI
Alexander Morris
24 Apr 15 07:21:41
$GME: Exc 1DyHIGH=40.54, hits:1, ch:+0.6%, AtPivR1, 5:2Accel+, allTFs+, medFlt:105M, HiPctSht[43%:20d], PrvClGap+[+0.4%], DyVol:59T:0.1x:0x
TheDayTradingAcademy
23 Apr 15 09:19:46
$GME up 13.24% since original recommendation made on 01/21/15. http://t.co/GhV659aEZD
Daily Contracts
23 Apr 15 06:02:01
Real-Time feed of company contracts, original agreements and executive updates from $GME http://t.co/YwaRY20lr4
NASDAQ
23 Apr 15 02:29:08
$GME - GameStop and Sony Computer Entertainment America Power Up to Support Ronald McDonald House Charities® http://t.co/IRUkP3Xrv0
Daily Contracts
22 Apr 15 14:03:01
Real-Time feed of company contracts, original agreements and executive updates from $GME http://t.co/YwaRY20lr4
Capital Market Labs
22 Apr 15 13:07:15
$BBY vs. $GPS vs. $GME vs. $TJX Compared Across 9 Critical Measures http://t.co/Z04s3pymOL http://t.co/kcDKrYLi6C
no_pullbacks
22 Apr 15 11:05:52
RT @tklempay: @no_pullbacks @OffShoreMan41 $AMZN +100, $GME +5 since those #GayDee #BOOM calls #FTFD
Tom K
22 Apr 15 10:47:10
@no_pullbacks @OffShoreMan41 $AMZN +100, $GME +5 since those #GayDee #BOOM calls #FTFD
$Stocknewsalerts
22 Apr 15 07:17:29
$GME GameStop Announces "Power to the Scholars" Scholarship Program From our Stock News Alerts App
Capital Market Labs
21 Apr 15 14:15:10
$BBY vs. $GPS vs. $GME vs. $SPLS Compared Across 9 Critical Measures http://t.co/Xgp3rADjL1 http://t.co/Xn64utZafH
Mrs.Sarah Gibson
21 Apr 15 13:47:37
http://t.co/deyIpg0Gsg Bullish on $GME A Gamers Dream Stock For 2015 Gamestop (GME)
TheDayTradingAcademy
21 Apr 15 08:21:22
$GME up 13.10% since original recommendation made on 01/21/15. http://t.co/GhV659aEZD
Daily Contracts
21 Apr 15 07:40:25
Real-Time feed of company contracts, original agreements and executive updates from $GME http://t.co/YwaRY20lr4
Jeffrey Blake
21 Apr 15 07:31:51
$GME Where is GameStop Corp. (NYSE:GME) Heading? http://t.co/kbcweu5EmS
John Ablemann
21 Apr 15 07:31:50
$GME 3 Things to Watch When GameStop Corp. Reports Earnings on March 26 http://t.co/E4pFO0rFZ9
NASDAQ
21 Apr 15 07:11:10
$GME - The 3 Best Stocks to Invest in Electronics Retailers http://t.co/fCivMXM6uU
Thudder & Wicks
21 Apr 15 02:56:13
$GME going retro with classic consoles and games http://t.co/2RTe3GqBuJ
Stephen Kaiser
20 Apr 15 09:19:57
The quarterly covered call program continues for some of my LT holdings $AAPL $VDE $SCTY $PBR $GME $FSLR #BeatTheMarket #Options #Income
TheDayTradingAcademy
20 Apr 15 09:13:27
$GME up 1.61% today. Up 12.49% since the original stock recommendation made on 01/21/15. http://t.co/GhV659aEZD
AlphaStreet
20 Apr 15 08:49:35
$GME General Update: GME & Sony Computer Entertainment America will donate PlayStation®4 gaming bundle to all Ronald McDonald Houses In US.
$Stocknewsalerts
20 Apr 15 08:46:33
$GME GameStop and Sony Computer Entertainment America Power Up to Support Ronald McDonald House Charities® (R From our Stock News Alerts App
CEK CPA
20 Apr 15 08:06:23
$GME. Goin higher.
Jack Damn
20 Apr 15 04:31:41
Good morning. Swing book is flat to begin the week. On Watch: $INTC $AGIO $RIG $STX $GME (long). No shorts. ETFs: $GDX. Macro N/A.
Penny Stock Secret
20 Apr 15 00:46:37
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/NovWYe2RAx .. $GM.C $GME $GMED
Bruce Leeroy
19 Apr 15 22:08:17
Gamers Daily & Weekly Charts $ATVI $EA $GLUU $GME $MCZ $TTWO http://t.co/4n6svNyqtu
ZeroSum
19 Apr 15 12:22:53
GameStop $GME needs to buy Valve RIGHT NOW or they risk losing the entire market. They should do whatever it takes to buy Valve.
				
				
  +Follow August 22, 2013 2:09PM
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