GameStop (GME) is projected to report a healthy rise its top and bottom lines during its third quarter earnings scheduled for December 9, after the closing bell.
In the second quarter, the company saw demand turning around with net sales bouncing back after a multiyear low in the previous quarter, as noted by Seeking Alpha analyst Bay Area Ideas. The company’s top line rose 21.78% Y/Y to $972.2 million in Q2.
The analyst expects the company to further build on the growth in this quarter, with revenue expected to grow by nearly 15% to $987.28 million. The consensus EPS estimate is $0.20.
“Q2 marks only the second positive growth quarter in the past three years, and so it really is something to celebrate. Judging from the growth rate, an inflection point for the business seems to be in,” they said after the previous quarter’s earnings.
Moreover, investors will also be closely watching the management’s update on GameStop’s cash position after the company reported strengthened cash positions at the end of both Q1 and Q2 of this year, even as its core retail business continues to face headwinds.
The Texas-based firm held $8.7 billion at the end of the second quarter. Additionally, GameStop (GME) held Bitcoin (BTC-USD) valued at about $529 million by the end of Q2.
Over the last 2 years, GME has beaten EPS estimates 75% of the time and has beaten revenue estimates 13% of the time. Over the last 3 months, EPS as well as revenue estimates have seen 1 upward revision with no downward moves.
The stock has declined nearly 26% in the year so far compared to a nearly 17% rise in the broader markets.