Tag Archives: gme

GameStop losing ground to digital downloads, stock tanks

GameStop fell sharply Friday as some investors declared “game over” for the stock. The video game retailer late Thursday reported Q3 earnings that missed expectations by a wide margin. GameStop earned 57 cents a share excluding items on sales of $2.09 billion for the quarter that ended Nov. 1. Analysts polled by Thomson Reuters had expected 61 cents and $2.2 billion. Earnings per share fell 2% from the year-earlier period, while sales slipped 1%. GameStop blamed the delayed release of Ubisoft’s “Assassin’s Creed Unity” for hurting Q3 sales. Comparable store sales were down 2.3% in the period. GameStop (GME) stock was down 14%, near 37, in morning trading on the stock market today. During the quarter, new hardware sales increased 147%, outpacing industry growth of 102%, fueled by next-generation consoles from Microsoft (MSFT) and Sony (SNE). But new software sales declined 34% as the retailer faced difficult comparisons to …

Holiday video game sales outlook not looking so hot

Video game sales this holiday season could disappoint because of a weak lineup of new game software and mixed reviews for some recent titles, Pacific Crest Securities said Thursday. In a report on specialty retailer GameStop (GME), Pacific Crest analyst Evan Wilson said the outlook for this Christmas is “looking increasingly challenged.” While industry consensus is for physical software sales to begin to rebound in GameStop’s January quarter (fiscal Q4), “that looks less and less likely,” Wilson said. Wall Street estimates call for 5% to 10% growth in sales of new software at GameStop. But Wilson is targeting 4% growth. The fourth quarter already has been hurt by delays that have pushed major games into next year. Those games include “Battlefield Hardline” from Electronic Arts (EA) “Evolve” from Take-Two Interactive Software (TTWO) and “Batman: Arkham Knight” from Time Warner’s (TWX) Warner Bros. Interactive Entertainment. Meanwhile, new fall games aren’t inspiring…

GameStop overachieves in Q2 but faces tough comparisons ahead

Next-generation video game consoles and software are fueling a resurgence in industry sales and retailer GameStop (GME) is benefiting disproportionately. Late Thursday, the Grapevine, Texas-based company topped Wall Street’s forecasts with its fiscal second-quarter results . GameStop earned 22 cents a share in the quarter ended Aug. 2, up 144% from the same quarter last year and beating the consensus of 18 cents among analysts polled by Thomson Reuters. Sales rose 25% to $1.73 billion, compared with Wall Street’s target of $1.65 billion. GameStop (GME) stock jumped 5.5% to 42.70 in early afternoon trading on the stock market today. GameStop also guided analysts higher for third