GameStop (GME): Maintaining Outperform Ahead Of Hardware Refresh - Piper Jaffray
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Piper Jaffray analyst, Michael Olson, reiterated his Overweight rating on shares of GameStop (NYSE: GME) after the company reported Q2 EPS slightly ahead of consensus with revenue below. Guidance for Q3 is in-line with the Street and the FY EPS outlook of $3.90-4.05 was maintained (Street $3.98). The guidance does not include share repurchases, while Street ests do.
The top-line miss was due to an 18% decline in New Software from a tough comparison with the launch of Batman the prior year as well as fewer launches of top tier titles overall. Management attributed a 33% decline in New HW sales to news of an imminent console refresh. However, higher margin Tech Brands revenue was up 55%, and total gross margin was up 500bps (highest in company history), which drove EPS to $0.27 vs Street at $0.26. GameStop did not repurchase shares in Q2, but expects to repurchase a significant amount ($75-$100M) through the remainder of '16.
No change to the price target of $41.
Shares of GameStop closed at $32.16 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Raises Price Target on Citizens Financial Group (CFG) Following 3Q EPS Beat
- Two Reasons Alphabet (GOOG) Could Outperform After Earnings - Nomura
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Earnings
Related EntitiesPiper Jaffray, Michael Olson
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!