Fiscal Q3 Earnings Live Blog: Will GameStop Shares Bounce Back?

GameStop, game retailer and crowd favorite of memes (GME) – Get the Class A report from GameStop Corp. will release its third quarter results on December 9, shortly after the closing bell. Wall Street Memes will begin tracking all the action at 4 p.m. EST.

Please join us for this event and refresh your browser regularly after the end of the trading session for real time updates. Scroll through the different sections below to follow the winning day step by step. From top to bottom: (1) Q&A; (2) prepared remarks of the call on the results; (3) live blog on pre-earnings and (4) earnings forecast.

Figure 1: A GameStop store.

(Read more from Wall Street Memes: Here’s why GME stock could skyrocket after its recent drop)

Call on earnings: questions and answers

(Expect Q&A to start. Please scroll down.)

Call for results: prepared remarks

(Wait for the call for earnings to start. Please scroll down.)

Live blog on pre-winnings

(Expect for the start of the live blog on the pre-winnings. Please scroll down.)

Income expectations

According to Seeking Alpha, Wall Street expects GameStop to show 18% revenue growth this time around, out of total sales of $ 1.19 billion. Interestingly, this is the last quarter of the expected increase in revenue for the next year and a half, as GameStop’s rosters start looking tough in 2022.

Looking further down in the P&L, the net loss per share should come in at – $ 0.52. If confirmed, this will be GameStop’s sixth quarter of negative gains in the last seven – that is, since the start of the pandemic. Wall Street expects to see negative earnings in four of the next five quarters, including the third quarter of the fiscal year.

Here are some interesting questions to keep in mind on winnings day:

  • Will the console refresh cycle continue to fuel strong double-digit hardware growth? Or will the supply chain crisis cause sales to hiccup this time around?
  • After only 3% growth in the last quarter, will the software segment rebound?
  • Can the momentum in collectibles continue? If so, will it be significant enough to inspire investor confidence and optimism?
  • Will the management team provide more updates on GameStop’s logistics investments and get investors excited about the company’s forays into e-commerce?
  • Will the gross margin improve again, as in the second fiscal quarter? And can GameStop continue to control selling and administration costs, perhaps through further store closures, thereby creating operational leverage and contributing to profitability?
  • Will the management team finally share their forecasts for the remainder of fiscal year 2021 or 2022?

Of course, a big question on the minds of investors and traders is whether GME stock can bounce back from the current decline. Since peaking at the end of January 2021, stocks have lost half of their market value.

The slightly better news is that GameStop action is entering the third-quarter fiscal year earnings week, valued at 120 times the EPS forecast for 2023. While that multiple still looks very rich, it is lower than the 140 times d. ‘three months ago. GME has fallen almost 20% in the last month alone.

Could earnings day be a catalyst for the stock price to rise? The “monkey community” of individual investors certainly hopes so.

(Learn more about Wall Street memes: After its recent drop, what’s next for AMC Stock?)

(Disclaimers: This is not investment advice. The author may go along with one or more actions mentioned in this report. Additionally, the article may contain affiliate links. These partnerships do not influence editorial content. Please support Wall Street Memes)

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