What To Expect From GameStop Corp. (NYSE:GME)?

Posted by Chris Bell November 21, 2013 0 Comment 981 views

The expectations of analysts from the $6.13 billion market capped GameStop Corp. (NYSE:GME) is sky high in the run up to 3Q operational results announcements slated for later today. The analyst estimate pegs the profits per share to come in at $0.58 which would translate to a 52% increase from its 3Q12 profits. The revenue is also being projected to go up to $1.98 billion from the previous year’s same quarter $1.77 billion. For the whole year, the street expects the firm to report revenue of $8.88 billion. This upbeat expectation from the games maker is coming after a sequential dip in revenue the company had reported during the past 4 quarters.

Market Performance Lags Behind

The upbeat sentiments of the analysts have not been reflected in the price of the gaming stock at the browsers. It has shed close to 9% of its market value during trading in the last 5 days of trading. This weakness of sentiment in the stock is a relatively recent proposition which pans back to the last 30 days. In this period, GameStop Corp. (NYSE:GME) stock has shed close to 4.2% of its market valuation.  Prior to this depressed valuations, the stock was a highflying asset which has seen a 105% increase in its market value over the past 12 months. In the run up to the earnings call, the stock depreciated by close to 1.4% during trading yesterday and settled at $52.44 per share by end of the trading session.

Past Year Record

The Analysts have put out a price target of $61.35 for this S&P 500 index tracked stock over the next few months. In the past year it has managed to post net income loss of $298 million and has managed to post dividend yield of 2.1% in the same period.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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