GameStop Falls On Revenue, Same Store Sales
Ticker.tv News | Aug 26, 2016 09:06AM ET
GameStop Corp. (NYSE:GME), a video game retailer company yesterday reported their second quarter 2016 financial results. GameStop reported second quarter earnings of $0.27 per share which was in line with analyst expectations. GameStop reported second quarter revenues fell 7.4% year over year to $1.63 billion which fell short of analyst expectations of $1.72 billion. Gamestop reported that same store sales fell 10.6% which was higher than analyst expectations of a drop of only 4% to 7%.h3 GameStop Corp. CEO’s Comments/h3
h3 GME Technical Analysis/h3Paul Raines, chief executive officer, stated, “As expected, the continued growth and increased profit contribution of our non-physical gaming businesses drove our second quarter results. Tech Brands sales grew more than 50%, omni-channel sales increased 16%, Collectibles sales more than doubled and year-to-date, more than half of GameStop’s operating earnings have come from non-physical gaming categories. These new businesses offset a tough quarter for video gaming and prove that our diversification strategy is succeeding.” Market Wired
GME opened trading yesterday at $31.67 which was down from the previous days trading of $31.71. GME closed trading yesterday at $32.16 and crashed down after market to $29.66, equivalent to a 8% decrease from the closing price. Taking a look at the daily chart we can see the last time GME traded below these levels we have to go back to August 9th when it traded at $29.63. Taking a closer look at the daily chart we can see that GME has been in an upward trend dating back to June 24th when it traded at $25.34. GME has a float of 101.73 million shares and traded 1.96 times the normal daily trading volume on Thursday. For trading purposes, I would like to see GME open trading on Friday below $30.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
h3 Company Profile/h3GameStop Corp. operates as an omnichannel video game retailer. It sells new and pre-owned video game hardware; physical and digital video game software; pre-owned and value video game products; video game accessories, such as controllers, gaming headsets, memory cards, and other add-ons for use with video game hardware and software; and digital products, including downloadable content, network points cards, prepaid digital and subscription cards, and digitally downloadable software. The company also sells mobile and consumer electronics, including smart phones, tablets, headphones, and accessories, as well as pre-owned smart phones; personal computer (PC) entertainment software in various genres, including sports, action, strategy, adventure/role playing, and simulation; and strategy guides, magazines, and gaming-related toys. In addition, it operates electronic commerce Websites comprising gamestop.com, ebgames.com.au, ebgames.co.nz, gamestop.ca, gamestop.it, gamestop.ie, gamestop.de, gamestop.co.uk, thinkgeek.com, and micromania.fr. Further, the company operates kongregate.com, a browser-based game site; Game Informer magazine, a print and digital video game publication; iOS and Android mobile applications; Simply Mac, a certified Apple (NASDAQ:AAPL) consumer electronic products reseller; and Spring Mobile, an authorized AT&T (NYSE:T) reseller operating pre-paid wireless stores under the Cricket Wireless name that offers prepaid services, devices, and accessories. As of January 30, 2016, it operated approximately 7,117 stores in the United States, Australia, Canada, and Europe. GameStop Corp. primarily offers its products under the GameStop, EB Games, and Micromania names. The company, formerly known as GSC Holdings Corp., was founded in 1994 and is headquartered in Grapevine, Texas.
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