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Subject:  Q4 update Date:  1/8/2011  2:26 PM
Author:  newsreporter Number:  191 of 246

Gamestop Falls On Q4 Update; Lazard Says Buy

Gamestop (GME) this morning reported holiday sales rose 5.4% from a year earlier to $3.02 billion, and that its comp-store sales in the period rose 3.4%.

The company said it exceeded its own plan for the holidays. And the company reiterated its Q4 and full-year forecast. (Gamestop is on a January-ending Q4.)


Lazard Capital Markets analyst Colin Sebastian this morning writes that the sell-off could just be profit taking following a 13% rise in the stock. He notes that the 1.7% rise in the used games category reflects the seasonality of fewer used titles being bought during gift-giving season. Sebastian sees some weakness in Europe, however, but guesses that used sales post-holidays are outperforming expectations.

Sebastian thinks Gamestop should benefit from Microsoft’s (MSFT) sales of 8 million “Kinect” game controllers, announced at the Microsoft keynote at CES last night.

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