September 26, 2023
London, UK

GameStop (GME) Third Quarter Earnings

GME Gamestop

GameStop (GME) announced today third-quarter financial results disappointing investors both in the top and bottom line. Here are the key points:

Net sales in the third quarter came at $1.19 billion below the expectations of 1.35 billion

Net Loss came at ($0.31) per share worse than the estimates for a loss of ($0.28). That was the seventh consecutive quarterly loss

Selling, general and administrative expenses were $387.9 million, or 32.7% of sales

Inventory was $1.131 billion, below the $1.141 billion in third quarter of 2021

Cash, cash equivalents and marketable securities were $1.042 billion

Previous Quarter Results

The company reported for the second quarter; Net sales of $1.136 billion. Sales attributable to collectibles, were $223.2 million for the quarter. Selling, general and administrative expenses were $387.5 million. Ended the period with cash and cash equivalents of $908.9 million. The loss per share was at $0.36. The loss in the second quarter of 2021 was at $0.21.

Yesterday some reports mention that GameStop is starting to cut its workforce, especially from the crypto arm and corporate staff.

Analysts’ Estimates for GameStop

The analyst’s forecasts for GameStop are for revenue of $1.35 billion with an adjusted loss between $0.26 and $0.28 per share. Analysts’ expectations for the fourth quarter revenue is for $2.399 billion.

GameStop Stock Price

GameStop stock price closed lower today at $22.40. GME stock has a 52-week trading range from $19.40 to $49.85. GameStop has lost 39% of its value since the beginning of the year. In the last three months, the stocks is 6% lower. Currently, GME is trading at its lowest level since May 24, 2022. GameStop’s market capitalization now stands at 7.12 billion.

The technical picture for GME stock is bearish as it is trading below all the major moving averages. A rebound would meet initial resistance at $25.93 the 50-day moving average. A break above might open the way for a move up to the 100-day moving average at $29.43.

In case the sellers continue the pressure, first support would emerge at $21.74 the low from May 25, 2022. A break below might test $19.39 the low from May 12, 2022.

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