http://seekingalpha.com/article/71330-gamestop-is-no-ordinary-retailerThe world’s largest video game retailer, with over 4,400 stores, has not been slowed by the current economic environment. GameStop's (GME) results have continuously dazzled Wall Street. Last month they announced better than expected numbers across the board. Their quarterly profit rose 46% largely, in part, due to strong video game sales of Call of Duty 4 amongst its best selling games. They are forecasting good results for this quarter and plan to open over 575 stores over the course of the year. Their revenue also jumped to $2.87 billion, almost 25%.GameStop is also able to predict that it will earn up to $2.34 per share this year and toward $3.00 in 2009. That is 25% annual earning growth if these numbers are reached. Credit Suisse analyst Gary Balter believes that GameStop can sustain 30% earning growth over the next few years even with a difficult operating environment. Janco Partners' analyst Mike Hickey believes the release of Grand Theft Auto IV could net GameStop $100 million in one week. The highly anticipated game will be released April 29th worldwide. Expect sales of the game to sizzle heading into the summer. GameStop has also continued expanding. They just purchased Free Record Shop in Norway. The almost 50 stores will join the 110 they currently have in the Nordic Region. With the cash on the balance sheet they can continue buying competition.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra