Video Game Makers Tick Higher on Strong GameStop (GME) Results, Outlook (EA) (TTWO)
Video game makers and Microsoft (Nasdaq: MSFT) are trading higher Thursday following strong quarterly results and improved outlook from retailer GameStop (NYSE: GME).
GameStop reported Q2 EPS of 9 cents, topping expectations by 5 cents. While comps fell 10.7 percent in the quarter, the Company said it was a narrower drop than previously expected.
Looking ahead, GameStop boosted FY13 EPS expectations from $2.90 to $3.15 up to a range of $3.00 to $3.20. The Street was looking for EPS of $3.15.
Names like Take-Two Interactive (Nasdaq: TTWO), Electronic Arts (Nasdaq: EA), and Activision Blizzard (Nasdaq: ATVI) are seeing upside as the market for used games remains strong, meaning solid content has been produced.
With its quarterly call, GameStop said it sees 2014 console category growth of 20 to 40 percent, some console growth in 2015, and a whole slew of new accessories for those consoles. The company also expects a
GameStop reported Q2 EPS of 9 cents, topping expectations by 5 cents. While comps fell 10.7 percent in the quarter, the Company said it was a narrower drop than previously expected.
Looking ahead, GameStop boosted FY13 EPS expectations from $2.90 to $3.15 up to a range of $3.00 to $3.20. The Street was looking for EPS of $3.15.
Names like Take-Two Interactive (Nasdaq: TTWO), Electronic Arts (Nasdaq: EA), and Activision Blizzard (Nasdaq: ATVI) are seeing upside as the market for used games remains strong, meaning solid content has been produced.
With its quarterly call, GameStop said it sees 2014 console category growth of 20 to 40 percent, some console growth in 2015, and a whole slew of new accessories for those consoles. The company also expects a
large increasein store traffic during Q3 and Q4, and that Q4 estimates are stronger than the company's initial view.