GameStop (GME) Estimates Raised at Needham & Company on 'Broad' Q2 Beat
- Sandisk Corp. (SNDK) Issues Q1 Warning
- Unusual 11 Mid-Day Movers 3/26: (CNAT) (WGBS) (DPLO) Higher; (SNDK) (SCMP) (WGO) Lower
- Oil Gains, Stocks Fall Following Saudi Strike on Yemen
- Apple (AAPL) PT Raised to $145 at Credit Suisse on iPhone Strength, Upside for Watch
- Netlist (NLST) Updates on Verdict in Diablo Technologies Litigation; Will 'Vigorously' Pursue IP Suit
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
- Signet Jewelers (SIG) PT, Estimates Lifted at Sterne Agee on Strong Q4
- SanDisk (SNDK) Price Target Reduced to $80 at FBN
- Low ASPs, Higher Operating Expenses Push Yingli Green Energy (YGE) to Wider-than-Expected Q4 Loss - Roth
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!