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GameStop (GME) Q4 Earnings and Revenues Surpass Estimates
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GameStop Corp. (GME - Free Report) posted better-than-expected fourth-quarter fiscal 2022 results wherein both top line and bottom line beat the Zacks Consensus Estimate. GME reported the first quarterly profit after seven straight quarters of losses.
Following the better-than-expected results, GameStop shares rallied 48.4% after the trading session on Mar 21.
Shares of this Zacks Rank #3 (Hold) company have increased 20% in the past three months against the industry’s 6.5% decline.
Q4 in Details
GameStop posted adjusted earnings of 16 cents per share in fourth-quarter fiscal 2022, beating the Zacks Consensus Estimate of a loss of 16 cents. The company had incurred adjusted loss per share of 47 cents in the prior-year quarter.
The company reported net sales of $2,226.4 million, which surpassed the Zacks Consensus Estimate of $2,168 million. However, the metric declined from $2,253.9 million reported in the year-ago fiscal quarter. Management highlighted that assessing partnerships with gaming and retail companies attributed to cost-effective top-line growth.
Gross profit increased to $499.8 million from $378.2 million posted in the year-ago fiscal quarter. Selling, general and administrative (SG&A) expenses declined to $453.4 million from $538.9 million reported in the year-ago quarter. As a percentage of SG&A expenses came in at 20.4%, down from 23.9% reported in the year-ago period.
The company’s operating earnings was $46.2 million in the reported quarter. It had reported an adjusted operating loss of $166.8 million in the prior-year fiscal period.
Other Financial Aspects
GameStop ended the quarter with cash and cash equivalents of $1,391 million, long-term debt of $28.7 million and stockholders’ equity of $1,322.3 million. Inventory was $682.9 million at the end of the reported quarter compared with $915 million at the close of the same quarter last year. This reflects the company’s ongoing focus on maintaining a healthy inventory position.
During the fourth quarter, the company provided cash flow from operations of $337.2 million compared with an outflow of $110.3 million during the same period last year. Free cash flow at the end of the reported quarter came in at $326.6 million. Capital expenditures in the quarter amounted to $11.6 million.
IPAR has an expected long-term earnings growth rate of 15% and a trailing four-quarter earnings surprise of 36.2%, on average. Inter Parfums currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ current financial year sales and earnings suggests growth of 10.6% and 0.8%, respectively, from the year-ago reported numbers.
The Kroger Co. operates in the thin-margin grocery industry. It currently carries a Zacks Rank of 2 (Buy). KR has a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Kroger’s current financial year sales and earnings suggests growth of 2.5% and 6.2%, respectively, from the prior-year reported numbers.
NIKE, engaged in the business of designing, developing and marketing of athletic footwear, currently carries a Zacks Rank of 2. NKE has a trailing four-quarter earnings surprise of 15.8%, on average.
The Zacks Consensus Estimate for NIKE’s’ current financial year sales suggests growth of 7.3% from the corresponding year-ago reported figures.
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GameStop (GME) Q4 Earnings and Revenues Surpass Estimates
GameStop Corp. (GME - Free Report) posted better-than-expected fourth-quarter fiscal 2022 results wherein both top line and bottom line beat the Zacks Consensus Estimate. GME reported the first quarterly profit after seven straight quarters of losses.
Following the better-than-expected results, GameStop shares rallied 48.4% after the trading session on Mar 21.
Shares of this Zacks Rank #3 (Hold) company have increased 20% in the past three months against the industry’s 6.5% decline.
Q4 in Details
GameStop posted adjusted earnings of 16 cents per share in fourth-quarter fiscal 2022, beating the Zacks Consensus Estimate of a loss of 16 cents. The company had incurred adjusted loss per share of 47 cents in the prior-year quarter.
The company reported net sales of $2,226.4 million, which surpassed the Zacks Consensus Estimate of $2,168 million. However, the metric declined from $2,253.9 million reported in the year-ago fiscal quarter. Management highlighted that assessing partnerships with gaming and retail companies attributed to cost-effective top-line growth.
GameStop Corp. Price, Consensus and EPS Surprise
GameStop Corp. price-consensus-eps-surprise-chart | GameStop Corp. Quote
Margins
Gross profit increased to $499.8 million from $378.2 million posted in the year-ago fiscal quarter. Selling, general and administrative (SG&A) expenses declined to $453.4 million from $538.9 million reported in the year-ago quarter. As a percentage of SG&A expenses came in at 20.4%, down from 23.9% reported in the year-ago period.
The company’s operating earnings was $46.2 million in the reported quarter. It had reported an adjusted operating loss of $166.8 million in the prior-year fiscal period.
Other Financial Aspects
GameStop ended the quarter with cash and cash equivalents of $1,391 million, long-term debt of $28.7 million and stockholders’ equity of $1,322.3 million. Inventory was $682.9 million at the end of the reported quarter compared with $915 million at the close of the same quarter last year. This reflects the company’s ongoing focus on maintaining a healthy inventory position.
During the fourth quarter, the company provided cash flow from operations of $337.2 million compared with an outflow of $110.3 million during the same period last year. Free cash flow at the end of the reported quarter came in at $326.6 million. Capital expenditures in the quarter amounted to $11.6 million.
3 Key Picks
Some top-ranked stocks are Inter Parfums (IPAR - Free Report) , The Kroger Co. (KR - Free Report) and NIKE, Inc. (NKE - Free Report) .
IPAR has an expected long-term earnings growth rate of 15% and a trailing four-quarter earnings surprise of 36.2%, on average. Inter Parfums currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ current financial year sales and earnings suggests growth of 10.6% and 0.8%, respectively, from the year-ago reported numbers.
The Kroger Co. operates in the thin-margin grocery industry. It currently carries a Zacks Rank of 2 (Buy). KR has a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Kroger’s current financial year sales and earnings suggests growth of 2.5% and 6.2%, respectively, from the prior-year reported numbers.
NIKE, engaged in the business of designing, developing and marketing of athletic footwear, currently carries a Zacks Rank of 2. NKE has a trailing four-quarter earnings surprise of 15.8%, on average.
The Zacks Consensus Estimate for NIKE’s’ current financial year sales suggests growth of 7.3% from the corresponding year-ago reported figures.