GameStop Gears Up For First Ever Investor Day On April 1st, Sterne Agee Maintains Buy Rating

Sterne Agee has published a research report on GameStop Corporation GME in anticipation of the company's 4Q earnings call scheduled for March 24.

In the report, Sterne Agee writes "On January 6, 2011, GME announced in-line holiday (Nov-Dec) results of $3.02B in revenue and +3.4% comps. However, the mix was less favorable, with hardware sales (lower margin) stronger than expected (Kinect) while used game sales were up a modest 1.7% or below company guidance of +8% to +12%. U.S. used game sales were up 8.5% in December, post-holiday sales had accelerated and the primary weakness in used sales was in the international segment. Holiday sales normally represent ~ 80% of the January quarter sales and have historically been a good proxy for 4Q sales results. As such, most of the mystery for the quarter is already out, in our opinion. Investor focus will be on 2011 guidance."

Sterne Agee maintains its Buy rating and $26 price target.

GameStop Corporation closed yesterday at $20.53.