GameStop (GME) reported earnings on Tue 21 November 2017 (a/h)

** charts after earnings **

 

 GameStop beats by $0.11, reports revs in-line; reaffirms FY18 EPS guidance 

• Reports Q3 (Oct) adjusted earnings of $0.54 per share, $0.11 better than the Capital IQ Consensus of $0.43; revenues rose 1.5% year/year to $1.99 bln vs the $1.98 bln Capital IQ Consensus, resulting in consolidated comparable store sales growth of 1.9% (+0.6% in the U.S. and +4.6% internationally). New hardware sales increased 8.8%, led by demand for Nintendo Switch, and new software sales increased 5.4% driven by a strong title lineup. Pre-owned sales declined 2.4%. Worldwide omnichannel sales increased by 38.6% on the strength of new hardware sales. Digital sales and non-GAAP digital receipts increased 11.9% and 8.3%, respectively, excluding the third quarter 2016 revenues from Kongregate which was sold in July 2017. On a reported basis, digital sales declined 16.8% to $37.2 million, while non-GAAP digital receipts increased 1.8% to $263.7 million.
• Co reaffirms guidance for FY18, sees EPS of $3.10-3.40 vs. $3.34 Capital IQ Consensus; comps up low to mid single digits from high end of down 0-5% previously.
• Digital sales and non-GAAP digital receipts increased 11.9% and 8.3%, respectively, excluding the third quarter 2016 revenues from Kongregate which was sold in July 2017. On a reported basis, digital sales declined 16.8% to $37.2 million, while non-GAAP digital receipts increased 1.8% to $263.7 million.
• On Monday, November 20, 2017, the company entered into an amendment to its existing asset based credit facility. The amended agreement contains more favorable terms, extends the maturity date of the facility to November 2022 and increases the capacity under the credit facility from $400 million to $420 million to allow for increased flexibility for future needs of the business.