GameStop Corp. (GME), Sears Holdings Corporation (SHLD), Dollar Tree, Inc. (DLTR): Retailers on the Radar

Since we are currently in the period when companies publish their financial results for the previous quarter, it is kind of a general rule that companies posting their results attract the most coverage during a particular day. In this way, on Thursday, among thousands of companies listed on the markets, and with both the Dow Jones and S&P finally climbing out of declines and starting the day edging by 0.3% and 0.5%, companies that are on the radar are: GameStop Corp. (NYSE:GME), Sears Holdings Corporation (NASDAQ:SHLD) and Dollar Tree, Inc. (NASDAQ:DLTR).

Overall, retailers posted weak results, and GameStop Corp. (NYSE:GME) as well reported an over 10% year-on-year drop in sales, which totalled $1.38 billion. However, the mobile sales of the company surged by about 120% on the year to $55.1 million, while digital receipts advanced by almost 18% on the year to $158 million. Overall, the net earnings of Gamestop amounted to about $10.5 million, versus the last-year quarter value of $21 million. But even so, the earnings are in line with the company’s earlier forecasts, and together with the expected release on the markets of two new consoles, the PS4 and Xbox One, Gamestop will definitely have good results in the following quarters and by the end of the year overall.

In this way, the company expects for the next quarter diluted EPS in the range between $0.50 and $0.55, while for the whole year, the expected EPS was upgraded to $3.00-$3.20, from the previous range of $2.90-$3.15. The stock of Gamestop gained over 14% this morning to about $54.5 per share.

Next on the list comes Sears Holdings Corporation (NASDAQ:SHLD), whose stock lost over 8% in the morning trading and is currently priced at $39.7. The drop in stock price came amid poor results reported by Sears for the second quarter. The company’s net loss attributable to the shareholders expanded to -$1.83 per share, or $194 million, versus a loss of $1.25 per share or $132 million posted in the same quarter of the last year. Due to a reduction in the number of stores operated by Sears Holdings, and the separation of the Sears Hometown and Outlet Stores, the company also experienced a $596 million decline in revenues, which totalled $8.9 billion.

And yet another retailer, whose financial results we can see today is Dollar Tree, Inc. (NASDAQ:DLTR).  The company’s net sales advanced by almost 9% over the year and totalled $1.85 billion, while earnings per share also went up by about 10% on the year to $0.56. The EPS of Dollar Tree missed the analysts’ mean estimate by only $0.01. In the morning trading, amid relatively positive news, the stock of Dollar Tree went up by about 1.5% to $52.7 per share.

These three retailers, due to their financial results, will be in the middle of the action for some time. Let’s see how the market is going to accept their earnings and how the financial results will influence the stock prices of Gamestop, Sears and Dollar Tree.

Disclosure: none