GameStop Misses EPS Estimates, Guidance Disappoints (GME)

Thu. August 20, 2009; Posted: 09:20 AM

Aug 20, 2009 (SmarTrend(R) News Watch via COMTEX) -- GME | Quote | Chart | News | PowerRating -- 8/20/2009-GameStop (NYSE:GME) reported Q2 EPS of 23 cents, missing consensus estimates of 28 cents. Revenues in the quarter fell 3.7% to $1.74 billion, but managed to top consensus estimates of $1.73 billion. GameStop also said that Q2 comparable store sales fell 14.1%. "Due to the effects of the recession and strong prior year comparisons, the video game industry experienced a sharp decline in consumer spending during the quarter," said Daniel DeMatteo, GameStop CEO. "Looking ahead, as the new title release schedule improves, we expect positive earnings growth in the back half of the year."

GameStop offered the following guidance statements for its third, fourth and full-year periods; "For the third quarter of fiscal 2009, GameStop is forecasting diluted earnings per share to range from $0.27 to $0.33, as compared to $0.28 in the prior year period. Comparable store sales are projected to range from -11.0% to -6.0%... For the fourth quarter of fiscal 2009, GameStop is forecasting diluted earnings per share to range from $1.47 to $1.65, as compared to $1.39 in the prior year period. Comparable store sales are projected to range from -7.0% to -1.0%... For fiscal 2009, GameStop is lowering diluted earnings per share guidance from the previously communicated range of $2.83 to $2.93 to a range of $2.40 to $2.64, representing annual EPS growth of flat to +10%. Comparable store sales are now projected to range from -8.0% to -4.0% in fiscal 2009." Analysts, on average, expected Q3 EPS of $0.41, Q4 EPS of $1.65 and fiscal 2009 EPS of $2.76.

Write to Chip Brian at cbrian@tradethetrend.com

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For full details on Gamestop Corp (GME) click here. Gamestop Corp (GME) has Short Term PowerRatings of 6. Details on Gamestop Corp (GME) Short Term PowerRatings is available at This Link.

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