Dear GME Stock Fans, Mark Your Calendars for Sept. 6

Source: shutterstock.com/EchoVisuals

GameStop (NYSE:GME) has been relatively quiet this quarter in terms of releasing news and press releases. Still, GME stock shareholders are slated to receive a major update soon, as the video game retailer will report its second-quarter earnings on Sept. 6 after the market close.

During its first-quarter earnings, GameStop disclosed that Ryan Cohen was elected to serve as Executive Chairman with a focus on capital allocation and efficient management. The company also revealed that it had terminated Matt Furlong as President and CEO. Mark Robinson was named as the new CEO with the title of General Manager.

In July, the company announced that Diana Saadeh-Jajeh would resign as Chief Financial Officer. Daniel Moore filled her spot as GameStop’s interim Principal Financial Officer and was also appointed as the Principal Accounting Officer.

In its 2022 annual report, the company highlighted a plan to cut costs (especially in Europe), improve vendor relationships and penetrate higher margin markets like collectibles and toys.

GameStop to Report Earnings on Sept. 6

For the second quarter, Wall Street analysts expect GameStop to report revenue of $1.141 billion, up by 0.46% year-over-year (YOY) and down by 7.75% compared to the prior quarter. The company is expected to remain unprofitable with an adjusted net income loss of $43 million, an EPS loss of 17 cents and an adjusted EPS loss of 14 cents. GameStop pointed out in its first-quarter results that it expects to continue to incur expenses from its European restructuring efforts, which totaled $14.5 million during Q1.

However, analysts forecast a return to profitability during the fourth quarter, when EPS is expected to be 17 cents. In the past, GameStop has reported its best yearly earnings results during the fourth quarter due to seasonality and the holiday season.

Perhaps just as important as earnings is guidance. GameStop has not provided this metric in recent quarters. Still, analysts believe that the company will report third-quarter revenue of $1.159 million — implying a YOY decline of 2.34% — and an adjusted EPS loss of 14 cents. For the full year of 2023, analysts expect $5.706 billion of revenue and an adjusted EPS loss of 26 cents.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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