GameStop (GME): Maintaining Outperform Ahead Of Hardware Refresh - Piper Jaffray

August 26, 2016 8:49 AM EDT
Get Alerts GME Hot Sheet
Price: $23.58 +1.16%

Rating Summary:
    12 Buy, 10 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
Trade GME Now!
Join SI Premium – FREE

Get daily under-the-radar research with's Stealth Growth Insider Get your 2-Wk 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.

For an analyst ratings summary and ratings history on GameStop click here. For more ratings news on GameStop click here.

Shares of GameStop closed at $32.16 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View, Earnings

Related Entities

Piper Jaffray, Michael Olson

Add Your Comment