Subscribe to RSSGameStop Earnings Drop, Stock Up – Analyst Blog
GameStop Corporation ( GME ), the leading video game and entertainment software retailer, recently reported fourth-quarter 2009 results that came a penny ahead of the Zacks Consensus Estimate, but fell year-over-year. The quarterly earnings of $1.29 per share beat the Zacks Consensus Estimate of $1.28 marginally, but dropped 3.7% from $1.34 delivered in the prior-year quarter due to an increase in SG&A expenses (up 11.5%) and a rise in depreciation and amortization (up 13.9%), partially offset by a marginal increase in the top-line, a slight dip in the cost of sales (0.1%) and a major drop in interest expense (20.9%). Despite a fall in the bottom-line, the Grapevine, Texas-based company expects its earnings to rebound in fiscal 2010. GameStop now expects first-quarter 2010 earnings between 46 cents and 48 cents a share, reflecting a year-over-year increase of 7% to 12%, and fiscal 2010 earnings between $2.58 and $2.68, depicting a rise of 14% to 18%. The current Zacks Consensus Estimate for first-quarter and fiscal 2010 are 47 cents and $2.59 per share, respectively. Shares of GameStop rose an impressive 6.55% ($1.30 per share) in Thursday trading. Revenue for the quarter rose marginally by 0.9% to $3,524 million, following an increase of 8.2% in third-quarter 2009. For fiscal 2010, management expects a revenue growth of 4% to 6%. By sales mix, new video game hardware sales fell 9.2% to $
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GameStop Earnings Drop, Stock Up – Analyst Blog
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