- GameStop‘s total net sales for Q2: $798.3 million, down 31% year-over-year (y/y).
- Hardware and Accessories net sales: $451.2 million, down 24% y/y, fell short of the $477.3 million estimate.
- Software net sales: $207.7 million, down 48% y/y, failed to meet the $283 million estimate.
- Collectibles net sales: $139.4 million, down 18% y/y, slightly above the $135.4 million estimate.
- Selling, General & Administrative (SG&A) expenses: $270.8 million, down 16% y/y, slightly above the $270.3 million estimate.
- Analyst ratings: 0 buy, 1 hold, and 1 sell.
GameStop on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely watching GameStop‘s tumultuous journey. In their report “GameStop: The Sinking Ship with a New Paint Job – Should You Board?”, they highlight the attention-grabbing resurgence of GameStop, once championed by Roaring Kitty. Despite superficial improvements, the company’s recent financial disclosures reveal underlying instability.
Another report by Baptista Research, “GameStop Corp.: What Are The Biggest Factors That Give It Any Kind Of Upside? – Financial Forecasts,” commends GameStop for its transformative rebound in the retail sector. The management’s successful navigation through debt challenges, strained vendor relationships, and cash constraints has resulted in noticeable improvements in its financial health and operational strategies.
A look at GameStop Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 1 | |
Growth | 4 | |
Resilience | 4 | |
Momentum | 5 | |
OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
GameStop, the specialty electronic game and PC entertainment software retailer, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a Growth score of 4 and Resilience score of 4, the company demonstrates strong potential for future expansion and the ability to weather market challenges. Additionally, GameStop‘s Momentum score of 5 indicates a positive trend in investor interest and market sentiment, positioning it well for continued growth.
Although GameStop‘s Value score is at 2 and its Dividend score at 1, suggesting some areas for improvement, the overall outlook remains favorable. With a focus on new and used video game products, accessories, and PC entertainment software, GameStop continues to maintain a solid presence in the United States, Australia, Canada, and Europe. The company’s strategic positioning and favorable Smart Scores indicate a positive trajectory for GameStop in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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