Video game retailer GameStop Corp GME is set to report third-quarter financial results after market close Wednesday, Dec. 6.
Here's a look at the key numbers and items to watch.
Earnings Estimates: Analysts estimate GameStop will report third-quarter revenue of $1.18 billion, according to data from Benzinga Pro.
The company reported revenue of $1.186 billion in last year's third quarter. GameStop has beaten revenue estimates from analysts in two of the past five quarters.
Estimates call for GameStop to report a loss of 8 cents per share in the third quarter, compared to a loss of 31 cents in last year's third quarter. The company has beaten earnings per share estimates in three of the past five quarters.
Related Link: Ken Griffin Doesn’t Want You To See ‘Dumb Money’ Movie, Screenwriters Say That’s Why You Should
Key Items to Watch: One of the key items to watch is improving losses by the company. GameStop reported a loss of 3 cents in the second quarter and a loss of 14 cents in the first quarter. The company also reported a profit of 16 cents per share in the fourth quarter.
This comes after the company reported losses of 52 cents, 35 cents and 31 cents per share in the first three quarters of fiscal 2022, respectively.
GameStop did not hold a conference call after its first- or second-quarter results, which could be a key item to monitor. A conference call to highlight key events from the third quarter and the future could help investors and analysts know what's ahead.
A movie called "Dumb Money" that focused on the storyline of investors in GameStop stock versus hedge funds and short sellers was released in September. The movie's release may have led to a short-term increase in interest in the stock and the company's stores, which would be reflected in the third-quarter results.
Shares of GameStop traded higher last week with increased volume ahead of the earnings report. A positive earnings report or guidance could lead to shares trading higher and potential calls for a short squeeze with over 20% of the float currently short.
GME Price Action: GameStop shares are down 8.95% to $15.46 on Tuesday versus a 52-week trading range of $11.83 to $27.65. Shares of GameStop are down 9% year-to-date in 2023.
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