Yahoo Finance GameStop (GME) Loss Narrows in Q1, Revenues Decline Y/Y
GameStop Corp. GME 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
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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.
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