GameStop (GME) Misses Q3 EPS by 4c, Q4 Guidance Falls Short

GameStop (NYSE: GME) reported Q3 EPS of $0.57, $0.04 worse than the analyst estimate of $0.61. Revenue for the quarter came in at $2.09 billion versus the consensus estimate of $2.21 billion.

Consolidated comparable store sales were -2.3%. Topline and comparable store sales were negatively impacted by the delayed release of Assassin’s Creed Unity.

During the quarter, new hardware sales increased 147.4%, greatly outpacing industry growth of 102.4%. After the first 12 months since launch, the U.S. installed base of the Sony PlayStation 4 and Microsoft Xbox One is 73% greater than the PlayStation 3 and Xbox 360 base was over the same period.

The company reached 47.3% new software market share during the quarter, its second highest ever, despite new software sales declining 34.4%. The decrease was primarily due to overlapping the company’s record market share of last year’s AAA titles, such as Grand Theft Auto V, Battlefield 4, Batman: Arkham Origins, Pokemon X/Y, and Assassin’s Creed IV: Black Flag.

The pre-owned/value category recorded its third straight quarter of positive growth, +2.6%, led by consumers discovering value in the affordably priced pre-owned video game consoles.

GameStop sees Q414 EPS of $2.08 - $2.24, versus the consensus of $2.28. For the fourth quarter of fiscal 2014, GameStop expects comparable store sales to range from -5.0% to +2.0%

GameStop sees FY14 EPS of $3.40 - $3.55, versus the consensus of $3.68. Full year comparable store sales are now expected to range from +2.0% to +5.0%.

For earnings history and earnings-related data on GameStop (GME) click here.

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Universal Insurance (UVE) Tops Q1 EPS by 10c
• Federated Hermes (FHI) Reports In-Line Q1 EPS