GameStop Q2 Results Beat Market Estimates

On Wednesday, GameStop released its second-quarter financial results, surpassing Wall Street quarterly income forecasts.

Its stock price declined by -2.50% to $18.75 per share on September 06. However, it is anticipated to go up by 3.57% to $19.42 apiece in the upcoming session.

The company’s earnings per share rose to -$0.03, beating analysts’ -$0.14 estimate, which is also the prior period’s reading.

On the other hand, the revenue of GameStop dropped to $1.16 billion but topped the $1.14 billion consensus. It is lower than the previous $1.24 billion data.

Moreover, its net sales hit $1.17 billion, better compared to the $1.14 billion from last year’s second quarter.

Additionally, the selling, general, and administrative expenses of GameStop fell to $322.50 million. The figures are lower than the $387.50 million from last year’s Q2.

Furthermore, cash, cash equivalents, and marketable securities reached $1.20 billion at the end of the quarter.

Solid demand for video games, collectibles, and consoles boosted its earnings. According to Executive Chairman Ryan Cohen, they directed the firm toward a more online-focused model. Its efforts are an attempt to recover from the past sales slump.

Based on analysts, the gaming merchandise retailer’s results show its transformation strategy to regain its presence in the industry.

Regarding leadership, the finance chief of GameStop resigned last month after the board expelled its fifth CEO in five years.

Super Mario Bros Freebie Offered by GameStop

In Canada, GameStop will offer a new keychain for players who pre-order the Super Mario Bros. game for $79.99. The freebie will be based on the new transformation power-up from the game.

However, the deal is not being offered in the US currently. But the freebie promotion in Canada will be valid until October 19 and available while supplies last.

For another game, GameStop will give customers an additional $50.00 of trade-in credit. This will be applied if customers trade almost any console for an Xbox Series X. 

The offer is to support the launch of the video game Starfield. Besides, the Xbox Series X or S are the most suitable consoles to play the game.