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Videogame retailer GameStop (NYSE:GME) is set to report its quarterly results on Wednesday, after the closing bell, as investors look out for initiatives further reducing company expenditures.
The former meme stock is forecasted to post a loss in the second quarter, holding a consensus EPS Estimate of -$0.14 (+60.0% Y/Y) and a revenue estimate of $1.14B (flat Y/Y).
GameStop, which witnessed massive surges in 2020 and 2021 aided by traders on Reddit, has been attempting various cost-cutting measures to improve its profitability while also trying to address slowing sales amidst competition from larger retailers.
“GameStop’s core business of trading physical video games died out years ago, and while the company has tried to be innovative and diversify, the fact is it isn’t working,” said Josh Arnold in a recent analysis.
In the first quarter, the company noted a 10.3% fall in revenue while quarterly loss narrowed to $50.5 million from $157.9 million last year and said it would not hold a conference call.
GameStop also recently through a slew of changes at its helm, with Matthew Furlong departing as CEO following first-quarter results, and activist investor Ryan Cohen elected as executive chairman to oversee capital allocation and overseeing management.
Its chief financial officer Diana Saadeh-Jajeh also resigned in July, and the company appointed Daniel Moore as its principal accounting officer and interim principal financial officer.
Over the last 2 years, GME has beaten EPS estimates 38% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 0 downward. Revenue estimates have seen 1 upward revision and 2 downward.
