GameStop (GME) Estimates Raised at Needham & Company on 'Broad' Q2 Beat
- Top 10 News for 5/23 - 5/27: Computer Sciences to Acquire Key Enterprise Asset; Bayer Makes Run at Monsanto; Twitter has 'Character' Change
- Wall Street puts finishing touch on best week since March
- Marketo (MKTO) Deal Talk to Force Microsoft's (MSFT) Big Wallet Into Action
- Thermo Fisher (TMO) to Acquire FEI Company (FEIC) in ~$4.2B Deal
- Valeant Pharma (VRX) Rejected Joint Takeda, TPG Takeover Approach - WSJ
Needham & Company analyst Sean McGowan reiterated a Buy rating and $55 price target on GameStop (NYSE: GME) while raising estimates following a broad Q2 beat.
McGowan commented, "2Q results beat expectations broadly, with sales, margins (gross and operating) and EPS all exceeding our estimates and showing exceptional YoY growth. As expected, new video game hardware rose sharply, but the strong growth in new software was more surprising. Gross margins were higher than expected in almost every product segment. Management’s guidance for 3Q, facing a difficult comparison, was quite encouraging, as was the affirmation of previous guidance, given that several AAA titles have shifted out of the fiscal year."
The firm is raising our EPS estimates by $0.10 in 2014, '15 and '16 to reflect better margin assumptions. FY 2015 EPS goes from $3.65 to $3.75 and FY 2016 EPS goes from $4.50 to $4.60.
Shares of GameStop closed at $40.49 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sterne Agee CRT Remains Sidelined on GameStop (GME) as Guidance Overshadows 1Q Results
- Baird Remains Bullish on Palo Alto Networks (PANW) Following Solid 3Q and In-Line Guidance
- Ulta Salon (ULTA): ECommerce Could Add Another Leg Of Growth - Nomura
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
Related EntitiesNeedham & Company
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!