GameStop (GME) Shares Rise
GameStop Corp. (GME.N: Quote, Profile, Research), the largest U.S. video game retailer, reported on Tuesday reported a quarterly profit and strong same-store sales and issued a holiday forecast that some analysts saw as conservative. Its stock hit a new year high.
Third-quarter net income was $13.6 million, or 17 cents per share, compared with a loss of $2.5 million, or 4 cents per share, a year before. The company said excluding special items, its profit equaled 22 cents a share, in line with the average forecast of 14 analysts polled by Reuters Estimates. Revenue nearly doubled to $1.01 billion from $534 million a year earlier. Sales at stores open at least a year were up 8.8 percent versus a year before. GameStop predicted a strong holiday season with comparable store sales climbing between 14 percent and 18 percent during the fourth quarter, following the launch of Sony Corp.'s (6758.T: Quote, NEWS, Research) (SNE.N: Quote, Profile, Research) PlayStation 3 and Nintendo Co. Ltd.'s (7974.OS: Quote, NEWS, Research) Wii video game consoles. It forecast fourth-quarter earnings per share of $1.53 to $1.59 and full-year earnings per share of $1.98 to $2.04. "Holiday guidance may prove conservative," Lazard Capital Markets analyst Colin Sebastian said in a client note. He has a "buy" rating on the stock and on Tuesday raised his 12-month price target on GameStop to $60 from $54 per share. U.S. video game companies reap around half of their sales in the holiday season. During the third quarter, GameStop's hardware sales climbed 69 percent from a year earlier, led by Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox 360 and Nintendo's DS Lite hand-held player. Sales of software rose 14 percent, led by the popular "Madden" football game from Electronic Arts Inc. (ERTS.O: Quote, Profile, Research), "Saints Row" from THQ Inc. (THQI.O: Quote, Profile, Research) and "Dead Rising" from Capcom Co. Ltd. (9697.T: Quote, NEWS, Research) Shares were up $2.71 or 5.3 percent in afternoon trade on the New York Stock Exchange to $53.87 after touching a 52-week high of $54.90 earlier in the session.
Source: Reuters.comLabels: Capcom, Electronic Arts, ERTS, GameStop Corp., GME, Microsoft, MSFT, SNE, Sony Corp., THQI, Video Games
posted by Stock Administrator @ 4:42 PM
0 Comments
GameStop (GME) Shares Rise
GameStop Corp. (GME.N: Quote, Profile, Research), the largest U.S. video game retailer, reported on Tuesday reported a quarterly profit and strong same-store sales and issued a holiday forecast that some analysts saw as conservative. Its stock hit a new year high.
Third-quarter net income was $13.6 million, or 17 cents per share, compared with a loss of $2.5 million, or 4 cents per share, a year before. The company said excluding special items, its profit equaled 22 cents a share, in line with the average forecast of 14 analysts polled by Reuters Estimates. Revenue nearly doubled to $1.01 billion from $534 million a year earlier. Sales at stores open at least a year were up 8.8 percent versus a year before. GameStop predicted a strong holiday season with comparable store sales climbing between 14 percent and 18 percent during the fourth quarter, following the launch of Sony Corp.'s (6758.T: Quote, NEWS, Research) (SNE.N: Quote, Profile, Research) PlayStation 3 and Nintendo Co. Ltd.'s (7974.OS: Quote, NEWS, Research) Wii video game consoles. It forecast fourth-quarter earnings per share of $1.53 to $1.59 and full-year earnings per share of $1.98 to $2.04. "Holiday guidance may prove conservative," Lazard Capital Markets analyst Colin Sebastian said in a client note. He has a "buy" rating on the stock and on Tuesday raised his 12-month price target on GameStop to $60 from $54 per share. U.S. video game companies reap around half of their sales in the holiday season. During the third quarter, GameStop's hardware sales climbed 69 percent from a year earlier, led by Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox 360 and Nintendo's DS Lite hand-held player. Sales of software rose 14 percent, led by the popular "Madden" football game from Electronic Arts Inc. (ERTS.O: Quote, Profile, Research), "Saints Row" from THQ Inc. (THQI.O: Quote, Profile, Research) and "Dead Rising" from Capcom Co. Ltd. (9697.T: Quote, NEWS, Research) Shares were up $2.71 or 5.3 percent in afternoon trade on the New York Stock Exchange to $53.87 after touching a 52-week high of $54.90 earlier in the session.
Source: Reuters.com
Third-quarter net income was $13.6 million, or 17 cents per share, compared with a loss of $2.5 million, or 4 cents per share, a year before. The company said excluding special items, its profit equaled 22 cents a share, in line with the average forecast of 14 analysts polled by Reuters Estimates. Revenue nearly doubled to $1.01 billion from $534 million a year earlier. Sales at stores open at least a year were up 8.8 percent versus a year before. GameStop predicted a strong holiday season with comparable store sales climbing between 14 percent and 18 percent during the fourth quarter, following the launch of Sony Corp.'s (6758.T: Quote, NEWS, Research) (SNE.N: Quote, Profile, Research) PlayStation 3 and Nintendo Co. Ltd.'s (7974.OS: Quote, NEWS, Research) Wii video game consoles. It forecast fourth-quarter earnings per share of $1.53 to $1.59 and full-year earnings per share of $1.98 to $2.04. "Holiday guidance may prove conservative," Lazard Capital Markets analyst Colin Sebastian said in a client note. He has a "buy" rating on the stock and on Tuesday raised his 12-month price target on GameStop to $60 from $54 per share. U.S. video game companies reap around half of their sales in the holiday season. During the third quarter, GameStop's hardware sales climbed 69 percent from a year earlier, led by Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox 360 and Nintendo's DS Lite hand-held player. Sales of software rose 14 percent, led by the popular "Madden" football game from Electronic Arts Inc. (ERTS.O: Quote, Profile, Research), "Saints Row" from THQ Inc. (THQI.O: Quote, Profile, Research) and "Dead Rising" from Capcom Co. Ltd. (9697.T: Quote, NEWS, Research) Shares were up $2.71 or 5.3 percent in afternoon trade on the New York Stock Exchange to $53.87 after touching a 52-week high of $54.90 earlier in the session.
Source: Reuters.com
Labels: Capcom, Electronic Arts, ERTS, GameStop Corp., GME, Microsoft, MSFT, SNE, Sony Corp., THQI, Video Games
posted by Stock Administrator @ 4:42 PM
0 Comments
