) plunged roughly 20% yesterday on lowered earnings outlook as
) Xbox 360 and
) PlayStation 3 software was soft during the holiday period. This
resulted in a 22.5% drop in the videogame retailer's new software
This Grapevine, Texas based company now projects
fourth-quarter earnings between $1.85 and $1.95 and fiscal-year
2013 earnings in the band of $2.96 to $3.06 per share. The
guidance provided fell short of the current Zacks Consensus
Estimate of $2.14 and $3.24 for the fourth quarter and fiscal
2013, respectively. Also, this was enough to hurt investors'
Earlier, this Zacks Rank #3 (Hold) stock had forecasted
fourth-quarter earnings in the range of $1.97 to $2.14 and
fiscal-year 2013 earnings between $3.08 and $3.25 per share. In
the coming days, we could witness a downtrend in the Zacks
Consensus Estimate and a revision in the Zacks' Rank.
GameStop said that global sales during the nine-week holiday
period ended Jan 4, 2014 increased 9.3% to $3.15 billion. Total
comparable-store sales rose 10.2%, portraying an increase of 7.1%
at the U.S. and 17.4% at international locations buoyed by new
video game console sales, including Xbox One and PlayStation 4
that fueled a 99.8% surge in new hardware sales.
GameStop, which competes with
), now envisions comparable-store sales for the fourth quarter
and fiscal 2013 to dovetail with the upper end of the previously
provided guidance range. The company had predicted
comparable-store sales to increase by 2% to 9% during the fourth
quarter and by 1.5% to 4.5% during the fiscal year.
The pre-owned category jumped 7%. Management now anticipates
gross margins for the pre-owned category in the range of 46% to
49% for the fourth quarter and the fiscal year. The Other
category sales climbed 4.8%. Within this category, digital
receipts increased 14.9% to $207.3 million, while mobile sales
rose 23.8% to $94.8 million.
GameStop's worldwide sales through mobile, web-in-store,
pick-up at store and ecommerce surged 57%. Sales via mobile site
jumped 47%, web-in-store and pick-up at store sales together
escalated over 120%, while sales through the company's website
The operator of 6,488 stores repurchased 800,500 shares at a
price $49.39 per share, aggregating $39.5 million during the
holiday period. The company informed that at the end of the
holiday period, it still had the authorization to buy shares
worth $467.1 million.
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