Editor’s Note: Related tickers: GameStop Corp. (NYSE:GME), Best Buy Co., Inc. (NYSE:BBY), Microsoft Corporation (NASDAQ:MSFT)
GameStop Corp. (NYSE:GME) said Thursday that its first-quarter net income fell 25 percent as revenue declined, but results at the world’s biggest video game retailer surpassed Wall Street’s expectations. The company earned $54.6 million, or 46 cents per share, in the three months that ended on May 4. That’s down from $72.5 million, or 54 cents per share, in the same period a year earlier. Revenue fell 7 percent to $1.87 billion from $2 billion. Analysts, on average, were expecting earnings of 40 cents per share on revenue of $1.82 billion, according to a poll by FactSet.
GameStop CFO: Bartering Helps Fill the Gap Between New Consoles (WSJ)
Video game retailer GameStop Corp. (NYSE:GME) is used to operating in a cyclical business, but the company has spent the last few years in an extra-long cycle as it waits for new Xbox One and PlayStation 4 game consoles to come out later this year. New consoles typically drive a jump in business for the retailer, but in the meantime, the company has focused on increasing its pre-owned video game business, GameStop Corp. (NYSE:GME) chief financial officer Rob Lloyd said in a recent interview with CFO Journal. “Usually new consoles will get introduced over a span of a couple years and the cycle will last four or five years,” Mr. Lloyd said. “But the cycle we’re wrapping up now has been six or seven years, which is a challenge from an operating standpoint.”
GameStop Corp (GME) Announces Quarterly Dividend of $0.28 (MideastTime)
GameStop Corp. (NYSE:GME) declared a quarterly dividend on Thursday, May 23rd, AnalystRatings.Net reports. Investors of record on Tuesday, June 4th will be given a dividend of $0.275 per share on Wednesday, June 19th. This represents a $1.10 dividend on an annualized basis and a yield of 3.03%. A number of research firms have also recently commented on GameStop Corp. (NYSE:GME). Analysts at SunTrust reiterated a “buy” rating on shares of GameStop Corp. (NYSE:GME) in a research note to investors on Wednesday. They now have a $44.00 price target on the stock. On a related note, analysts at Sterne Agee set a $46.00 price target on shares of GameStop Corp. (NYSE:GME) in a research note to investors on Tuesday. They now have a “buy” rating on the stock. Finally, analysts at Wedbush reiterated an “outperform” rating on shares of GameStop Corp. (NYSE:GME) in a research note to investors on Monday. They now have a $49.00 price target on the stock, up previously from $33.00.
More Deadpool Pre-Order Bonuses Revealed (Explosion)
New pre-order bonuses have ben revealed for the upcoming Deadpool, the third person action game based on the Marvel Comics character of the same name. Pre-ordering the game from Best Buy Co., Inc. (NYSE:BBY) and digitally on Steam and GameStop Corp. (NYSE:GME) will net you some extra bonuses. All players pre-ordering the game from Best Buy Co., Inc. (NYSE:BBY) will receive a 5$ voucher for any Marvel comic book. Canadian gamers will also get an exclusive Deadpool poster not available anywhere else. All those who pro-order the game digitally from Steam and GameStop Corp. (NYSE:GME) will received the Merc With A Map DLC pack, featuring two new levels called GRT Plaza and Inside Tower which are going to be playable in the Deadpool Challenge Mode and Infinity Mode.
