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Game Stop Hits New 52 Week High on Revised Earnings Forecast

Graph With Stacks Of CoinsGame Stop Corp. (NYSE: GME), the world’s largest video game products retailer raised its full-year earnings forecast from $2.90 to $3.15 per share up to $3.00 to $3.20. Wall Street liked the news and, as a result, shares were up more than 12 percent at $53.35 at noon Thursday.

The company said it expects increased sales based on strong pre-orders for Sony (NYSE: SNE)’s PlayStation 4 and Microsoft (NASDAQ: MSFT)’s Xbox One game consoles ahead of the holidays.

In an interview with Reuters, Game Stop president, Tony Bartel said “Q2 was the ninth straight quarter of negative comps in the category and we’re putting a flag in the ground and saying that that is the end of the negative comps era for quite some time as we see growth from this point forward.”

In addition to the EPS upgrade, the company expects full-year same-store sales to range between (3.5) percent and 1.5 percent. Previously the company said it expected a range of (5) percent to 1.5 percent.

The company reported Q2 earnings Thursday morning of $0.09 and revenue of $1.38 billion. Analysts had anticipated $0.04 and $1.35 billion, according to theflyonthewall.

Research firm, Monness Crespi upgraded GameStop from Sell to Neutral Thursday on the news.

Early in Thursday’s trading session GameStop stock hit a new 52-week high of $56.08.

[stock-tools exchange="NYSE" symbol="GME" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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One Comment

  1. Henry Hill

    August 23, 2013 at 7:09 pm

    Interesting commentary provided in this Q2 2013 Transcript @ http://www.earningsimpact.com/Transcript/82785/GME/Q2-2013-Earnings-Call