Post-Earnings Expert Analysis - GameStop

LONDON, December 12, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on GameStop Corp. (NYSE: GME). On November 20, 2014, the company announced its financial results for Q3 FY14 (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on GameStop Corp. (GameStop). The company's total global sales for Q3 FY14 were $2.09 billion, with new hard sales increasing by 147.4% on YoY basis. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

GameStop's total global sales for Q3 FY14 decreased by 0.7% from $2.11 billion in Q3 FY13. The company's reported sales underperformed Bloomberg analysts' forecasts of $2.20 billion. Further, GameStop's consolidated comparable store sales decreased 2.3% Y-o-Y. The company informed that its topline and comparable store sales were negatively impacted by the delayed release of Assassin's Creed Unity. On the other hand, the company's new hardware sales for Q3 FY14 significantly outpaced industry growth of 102.4%. GameStop's sales in the mobile & consumer electronics category rose 125.0% Y-o-Y, led by continued expansion and strong results of Spring Mobile. GameStop's global multichannel sales (mobile, web-in-store, pick-up at store, ecommerce) increased 20.1% Y-o-Y, driven by 91.4% Y-o-Y growth in the pick-up at store program. In addition, GameStop's Q3 FY14 non-GAAP digital receipts increased 52.4% Y-o-Y to $210.3 million, or $54.9 million of sales on a GAAP basis, primarily driven by growth of downloadable content, platform currency and international digital sales.

The CEO of GameStop, Paul Raines, stated that overall, most of the company's major product categories performed very well, but its Q3 FY14 results were impacted by Assassin's Creed Unity moving out of October. The free research on GME can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=GameStop&d=12-Dec-2014&s=GME

On November 11, 2014, GameStop's board of directors approved a new $500 million share repurchase plan, replacing the remaining $176 million available on the existing authorization. In addition, the company's board declared a quarterly cash dividend of $0.33 per common share. The dividend is payable on December 16, 2014, to the shareholders as of record on November 25, 2014.

On the basis of several titles being moved out of 2014 and the current sales trends of prior gen software, GameStop has narrowed its previous guidance. For Q4 FY14, GameStop now expects comparable store sales to range from -5.0% to 2.0%. Diluted earnings per share are expected to range from $2.08 to $2.24, representing a Y-o-Y growth of 10.0% to 18.5%. Sign up and read the free analyst's notes on GME at:

http://get.Investor-Edge.com/pdf/?c=GameStop&d=12-Dec-2014&s=GME

Stock Performance  

On the day following the earnings release, November 21, 2014, GameStop's stock plummeted 13.70%, ending the session at $37.86. Since then, the company's stock has mostly witnessed a negative trend. However, on the last close, Thursday, December 11, 2014, the stock finished at $33.91, 1.74% above its previous day's closing price of $33.33, after vacillating between $33.53 and $34.99. A total of 5.02 million shares were traded, which was above its three months average volume of 3.04 million shares. Over the previous three trading sessions and over the last one month, the company's shares have declined 3.64% and 20.21%, respectively. Further, the stock has lost 31.16% since the start of 2014. Shares in GameStop closed below their 50-day and 200-day moving averages of $40.15 and $40.39, respectively. Moreover, the stock traded at a PE ratio of 10.53 and has a Relative Strength Index (RSI) of 28.05. Visit Investor-Edge and access the latest research on GME at:

http://get.Investor-Edge.com/pdf/?c=GameStop&d=12-Dec-2014&s=GME

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 3 insider transactions made by 2 individuals. On December 01, 2014, Stephanie M. Shern, Director at GameStop, bought 10,333 shares at a $17.94 per share, and on the same day, she disposed an equal number of shares at $36.18 per share. Moreover, On December 08, 2014, Steven R. Koonin, Director at GameStop, sold 1,800 shares at $35.46 per share. Complimentary in-depth research on GME is available at:

http://get.Investor-Edge.com/pdf/?c=GameStop&d=12-Dec-2014&s=GME

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