What You Need to Know Ahead of GameStop Earnings Tuesday
GameStop's Earnings Report: What to Expect
GameStop is set to report its earnings for the fourth quarter of 2022 on Tuesday, March 7th. The company is expected to report a loss per share of $1.88, according to analysts polled by Refinitiv. Revenue is expected to come in at $2.24 billion. This would represent a decline of 26% year-over-year.
GameStop has been struggling in recent years as the gaming industry has shifted to digital downloads. The company has been trying to transform itself into a more diversified retailer, but it has not been successful in offsetting the decline in its core video game business.
Key Issues to Watch
There are several key issues to watch in GameStop's earnings report. These include:
- Revenue: Will GameStop's revenue continue to decline? Or will the company be able to offset the decline in its video game business with growth in other areas?
- Loss per share: Will GameStop's loss per share be as large as analysts expect? Or will the company be able to narrow its losses?
- Margins: Will GameStop's margins continue to decline? Or will the company be able to improve its profitability?
- Cash flow: Will GameStop be able to generate enough cash flow to fund its operations and investments?
What to Expect from GameStop's Earnings Call
GameStop's earnings call is scheduled to begin at 5:00 PM ET on Tuesday, March 7th. The call will be webcast live on the company's website. Investors will be looking for the following information on the call:
- An update on GameStop's financial performance
- A discussion of the company's plans for the future
- An answer to the question of whether GameStop can turn around its business
Investors should also be aware of the following risks associated with GameStop:
- The company's business is declining and it is unclear if it can be turned around
- The company is facing competition from a number of large and well-established retailers
- The company has a high level of debt and it is unclear if it can meet its financial obligations
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