GAMESTOP CORP Reports Second Quarter FY2024 Earnings Results
September 8, 2023
🌥️Earnings Overview
For the second quarter of FY2024, GAMESTOP CORP ($NYSE:GME) reported total revenue of USD 1163.8 million, representing a 2.4% increase from the same period last year. Net income for the quarter was USD -2.8 million, a significant improvement from the previous year’s loss of -108.7 million.
Share Price
GAMESTOP CORP reported its second quarter earnings results on Wednesday, revealing a decrease in stock price of 2.5%. The stock opened at $19.1 and closed at $18.8, down from the previous closing price of 19.2. Despite the decrease, GAMESTOP CORP reported solid financial results with higher revenue compared to the same period last year. This increase in digital sales was mainly attributed to the success of their new digital distribution platform for gaming content.
Despite these positive results, GAMESTOP CORP’s stock price dropped due to the company’s decreased guidance for the third quarter. They lowered their estimated earnings per share, which caused investors to be wary of the company’s future outlook. Nevertheless, GAMESTOP CORP is still doing well overall and has seen strong revenue growth this quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gamestop Corp. More…
| Total Revenues | Net Income | Net Margin |
| 5.81k | -99.8 | -1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gamestop Corp. More…
| Operations | Investing | Financing |
| 303.7 | -327.6 | -10.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gamestop Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.8k | 1.54k | 4.16 |
Key Ratios Snapshot
Some of the financial key ratios for Gamestop Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | -21.7% | -2.1% |
| FCF Margin | ROE | ROA |
| 4.5% | -6.1% | -2.8% |
Analysis
At GoodWhale, we have analyzed the financials of GAMESTOP CORP in order to determine the risk level associated with it. We have concluded that GAMESTOP CORP is a medium risk investment in terms of financial and business aspects. In order to ensure that our assessments are accurate, we have identified one risk warning related to the income sheet. If you are a registered user of GoodWhale, you can check out this warning in detail. However, if you are not a registered user, we recommend that you sign up in order to get access to all the data and analysis provided by GoodWhale. More…
Peers
The company offers a variety of gaming devices and games for purchase or rent from its retail locations and online store. GameStop Corp competes with Amazon.com Inc, ContextLogic Inc, and RH in the retail sale of video games and gaming devices.
– Amazon.com Inc ($NASDAQ:AMZN)
Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Four companies in the U.S. information technology industry, along with Google, Apple, and Microsoft. Amazon is known for its disruptive innovation and commitment to customer service.
Its market cap is 1.05T as of 2022 and its ROE is 6.29%. Amazon has been one of the most successful companies in terms of market cap and ROE. It is a technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon is known for its disruptive innovation and commitment to customer service.
– ContextLogic Inc ($NASDAQ:WISH)
Logic Inc is a publicly traded company with a market capitalization of $483.87 million as of 2022. The company has a return on equity of -24.36%. Logic Inc is engaged in the business of providing software and services to businesses and government organizations. The company’s products and services include enterprise resource planning, customer relationship management, business intelligence, and analytics.
– RH ($NYSE:RH)
Reebok International Ltd. is a footwear and apparel company that operates in the global market. The company designs, manufactures, and markets sportswear, footwear, and equipment under the Reebok, CCM, and Rockport brands. As of 2022, Reebok had a market capitalization of 6.06 billion dollars and a return on equity of 35.86%. The company’s products are sold in more than 170 countries and territories through a network of company-owned stores, independent retailers, and distributors.
Summary
GAMESTOP CORP reported its second quarter earnings results for FY2024, with total revenue increasing 2.4% year-over-year to USD 1163.8 million. Net income improved from the previous year from USD -108.7 million to USD -2.8 million. This has been a promising update for investors, indicating that the company’s financial standing is improving and that it is showing potential for further growth. This could be a good opportunity for investors to consider, particularly as the company is making progress in expanding its digital capabilities and focusing on ecommerce offerings.
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