GameStop Corp (GME) Q3 Earnings Preview: Loss Expected Amid Revenue Drop

Market News & Analysis: December 11th, 2024

GameStop Corp (GME) is set to release its third-quarter financial results on Tuesday, December 10, 2024, after the market close. Investors and analysts are keeping a close eye on the earnings report, which is expected to reflect the company’s ongoing challenges and transition in the specialty retail sector.

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Expected Q3 Earnings Report of GameStop Corp:

According to Analysts, GameStop is predicted to post a loss of $0.03 per share for Q3 2025, marking a decline from breaking even in the same quarter last year ($0.00 EPS). Revenue is expected to fall significantly, with forecasts of $887.7 million compared to $1.08 billion in the third quarter of the prior year.

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While GameStop has managed to beat earnings per share estimates in three of the last five quarters, it has struggled on the revenue front, missing analyst expectations in four of the last five quarters. The results will likely underscore the company’s efforts to balance operational costs while navigating an evolving retail landscape.

Stock Target Advisor’s Analysis on GameStop Corp:

Stock Target Advisor’s analysis presents a “Slightly Bearish” outlook for GameStop Corp, reflecting mixed signals. While GameStop has demonstrated strengths like positive free cash flow, high market capitalization, and superior risk-adjusted returns, it is plagued by challenges such as high volatility, poor return on assets, and overpricing relative to earnings and free cash flow metrics.

Analysts’ average target price for the stock is $17.75, indicating a potential price decline of 38.92% over the next 12 months. GameStop’s stock has seen a notable gain of 86.88% over the past year but remains under scrutiny due to its weak fundamentals and operational metrics.

For a comprehensive overview of GameStop’s stock performance and projections, check out the Analyst Ratings!

Conclusion:

As GameStop Corp prepares to release its Q3 earnings, the report is anticipated to reflect the company’s efforts to adapt to market changes amid declining revenue and profitability challenges.

Investors will closely analyze the results for signs of stabilization or further turbulence in GameStop’s performance and trajectory.

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