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GameStop (GME) 2013 Guidance May Not Include New Game Console(s)

November 16, 2012 2:32 PM EST Send to a Friend
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On Thursday, GameStop (NYSE: GME) released its Q3 earnings report, along with guidance. Commenting on developments, Brian Karimzad, an analyst with Goldman Sachs, said "While we have confidence in growth and factor in at least one new console in 4Q13, we note GameStop would not include this in its initial 2013 guidance (expected in March), given launch announcements are unlikely until the spring or summer."

In other words, initial 2013 outlook could be light.

"We raise our 2013/14 estimates on (1) a Wii U launch that is 30-40% lower than the prior Wii (prior view 50% lower), (2) our view of increasing probability of two additional new consoles launching in the next 18 months, and (3) flow through of buybacks with about 100% of FCF returned," said Karimzad.

Goldman Sachs raised its price target on GameStop to $28, from $25, and maintained a Buy rating.

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 $24.50 yesterday.




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