We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GameStop (GME) Loss Narrows in Q1, Revenues Decline Y/Y
Read MoreHide Full Article
GameStop Corp. (GME - Free Report) posted first-quarter fiscal 2023 results, delivering a narrower-than-expected loss per share and weaker-than-expected revenues. The bottom line fared better year-over-year, while the top line deteriorated from the year-earlier quarter’s reported figure.
Following the quarterly results, GameStop shares gained 5.6% after the trading session on Jun 7.
Shares of this Zacks Rank #3 (Hold) company have increased 49% in the past three months compared with the industry’s 4.2% growth.
Q1 in Details
GameStop posted an adjusted loss of 14 cents per share in first-quarter fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company had incurred an adjusted loss per share of 52 cents in the prior-year quarter.
GME reported net sales of $1,237.1 million, which missed the Zacks Consensus Estimate of $1,341 million. Also, the metric declined from $1,378.4 million reported in the year-ago fiscal quarter. Management highlighted that the decline in sales from new gaming software releases and lower sales of pre-owned software and hardware, as well as collectibles, were attributed to the top-line decline.
Gross profit decreased to $287.3 million from $298.5 million posted in the year-ago fiscal quarter. Selling, general and administrative (SG&A) expenses declined to $345.7 million from $452.2 million reported in the year-ago quarter. As a percentage of net sales, SG&A expenses came in at 27.9%, down from 32.8% reported in the year-ago period.
The company’s adjusted operating loss was $51.2 million in the reported quarter. It had reported an adjusted operating loss of $153.7 million in the prior-year fiscal period.
Other Financial Aspects
GameStop ended the first quarter with cash and cash equivalents of $1,057 million, long-term debt of $26.3 million and stockholders’ equity of $1,271.6 million. Inventory was $759.5 million at the end of the reported quarter compared with $917.6 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 first quarter, the company used cash flow from operations of $102.7 million compared with an outflow of $303.9 million during the same period last year. Free cash flow at the end of the reported quarter came in at negative $111.8 million. Capital expenditures in the quarter amounted to $9.1 million.
Tecnoglass manufactures and sells architectural glass and aluminum products for the residential and commercial construction industries.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 18.1% and 23.8%, respectively, from the corresponding year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 22.7%, on average.
Skechers is a worldwide producer and distributor of footwear for men, women and children.
The Zacks Consensus Estimate for Skechers’ current financial-year sales suggests growth of 7.8%, while earnings per share are expected to rise by 31.9% from the corresponding year-ago reported figures. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.
Nomad Foods manufactures and distributes frozen foods. The company has a trailing four-quarter earnings surprise of 8.5%, on average.
The Zacks Consensus Estimate for NOMD’s current financial year sales suggests growth of 8%, while earnings are likely to decline 3.4% from the prior-year reported numbers.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
GameStop (GME) Loss Narrows in Q1, Revenues Decline Y/Y
GameStop Corp. (GME - Free Report) posted first-quarter fiscal 2023 results, delivering a narrower-than-expected loss per share and weaker-than-expected revenues. The bottom line fared better year-over-year, while the top line deteriorated from the year-earlier quarter’s reported figure.
Following the quarterly results, GameStop shares gained 5.6% after the trading session on Jun 7.
Shares of this Zacks Rank #3 (Hold) company have increased 49% in the past three months compared with the industry’s 4.2% growth.
Q1 in Details
GameStop posted an adjusted loss of 14 cents per share in first-quarter fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company had incurred an adjusted loss per share of 52 cents in the prior-year quarter.
GME reported net sales of $1,237.1 million, which missed the Zacks Consensus Estimate of $1,341 million. Also, the metric declined from $1,378.4 million reported in the year-ago fiscal quarter. Management highlighted that the decline in sales from new gaming software releases and lower sales of pre-owned software and hardware, as well as collectibles, were attributed to the top-line decline.
GameStop Corp. Price, Consensus and EPS Surprise
GameStop Corp. price-consensus-eps-surprise-chart | GameStop Corp. Quote
Margins
Gross profit decreased to $287.3 million from $298.5 million posted in the year-ago fiscal quarter. Selling, general and administrative (SG&A) expenses declined to $345.7 million from $452.2 million reported in the year-ago quarter. As a percentage of net sales, SG&A expenses came in at 27.9%, down from 32.8% reported in the year-ago period.
The company’s adjusted operating loss was $51.2 million in the reported quarter. It had reported an adjusted operating loss of $153.7 million in the prior-year fiscal period.
Other Financial Aspects
GameStop ended the first quarter with cash and cash equivalents of $1,057 million, long-term debt of $26.3 million and stockholders’ equity of $1,271.6 million. Inventory was $759.5 million at the end of the reported quarter compared with $917.6 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 first quarter, the company used cash flow from operations of $102.7 million compared with an outflow of $303.9 million during the same period last year. Free cash flow at the end of the reported quarter came in at negative $111.8 million. Capital expenditures in the quarter amounted to $9.1 million.
3 Red-Hot Stocks
Some top-ranked stocks are Tecnoglass (TGLS - Free Report) , Skechers U.S.A., Inc. (SKX - Free Report) and Nomad Foods Limited (NOMD - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tecnoglass manufactures and sells architectural glass and aluminum products for the residential and commercial construction industries.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 18.1% and 23.8%, respectively, from the corresponding year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 22.7%, on average.
Skechers is a worldwide producer and distributor of footwear for men, women and children.
The Zacks Consensus Estimate for Skechers’ current financial-year sales suggests growth of 7.8%, while earnings per share are expected to rise by 31.9% from the corresponding year-ago reported figures. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.
Nomad Foods manufactures and distributes frozen foods. The company has a trailing four-quarter earnings surprise of 8.5%, on average.
The Zacks Consensus Estimate for NOMD’s current financial year sales suggests growth of 8%, while earnings are likely to decline 3.4% from the prior-year reported numbers.