Research Desk Line-up: Conn’s Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on GameStop Corp. (NYSE: GME), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GME, following the Company’s announcement of its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 25, 2017. The Grapevine, Texas-based Company reported a 3.8% y-o-y growth in its total global sales, outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:
Get more of our free earnings reports coverage from other constituents of the Electronics Stores industry. Pro-TD has currently selected Conn’s, Inc. (NASDAQ: CONN) for due-diligence and potential coverage as the Company announced on June 06, 2017, its financial results for Q1 FY18 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Conn’s when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GME; also brushing on CONN. With the links below you can directly download the report of your stock of interest free of charge at:
During the three months ended on April 29, 2017, GameStop reported net sales of $2.05 billion compared to $1.97 billion recorded at the end of Q1 FY16. Net sales numbers topped market expectations of $1.89 billion. The Company attributed the growth in net sales to an increase in comparable store sales of 2.3% y-o-y and an increase in sales in Technology Brands.
The video game retailer reported net income of $59.0 million, or $0.58 per diluted share, in Q1 FY17 compared to $65.8 million, or $0.63 per diluted share, in the prior year’s comparable period. Meanwhile, the Company’s adjusted net income for the reported quarter came in at $63.6 million, or $0.63 per diluted share, compared to $68.4 million, or $0.66 per diluted share, in the past year’s same quarter. Meanwhile, Wall Street had expected the Company to report adjusted net income of $0.49 per diluted share.
In the reported quarter, GameStop’s profit came in at $702.5 million, or 34.3% of net sales, compared to $675.5 million, or 34.3% of net sales, in the year ago same period. The Company’s operating earnings for Q1 FY17 stood at $101.1 million, or 4.9% of net sales, versus $114.0 million, or 5.8% of net sales, in the first quarter of FY16.
The Company’s New video game hardware segment’s net sales grew from $312.9 million in Q1 FY16 to $389.9 million in the reported quarter. The segment’s gross profit also increased to $38.1 million in Q1 FY17 from $28.3 million in Q1 FY16.
During Q1 FY17, New video game software segment reported net sales of $520.5 million compared to $567.2 million recorded in the prior year’s same quarter. Meanwhile, the segment’s gross profit came in at $113.7 million in Q1 FY17 compared to $127.9 million in Q1 FY16.
GameStop’s Pre-owned and value video game products segment’s net sales were $526.2 million in Q1 FY17 which came in below the $560.9 million reported in Q1 FY16. Moreover, the segment’s gross profit for the reported quarter was $253.7 million compared to $263.2 million in the previous year’s corresponding quarter.
Video game Accessories segment’s sales increased from $162.7 million in Q1 FY16 to $176.1 million in Q1 FY17. However, the segment’s gross profit fell to $55.9 million in Q1 FY17 from $57.1 million in the year-ago same period.
The Company’s Digital segment’s net sales for the reported quarter came in at $44.1 million versus $42.8 million in Q1 FY16. The segment’s gross profit for Q1 FY17 was $36.1 million versus $37.0 million in the year ago comparable quarter.
Technology Brands segment reported net sales of $201.4 million in Q1 FY17, up from $165.8 million in the last year’s same period. The segment’s gross profit also increased to $144.6 million in Q1 FY17 from $109.7 million in Q1 FY16.
In Q1 FY17, Collectibles segment’s net sales were $114.5 million versus $82.3 million in Q1 FY16. The segment posted gross profit of $35.2 million in Q1 FY17, which came in above $28.6 million in Q1 FY16.
Cash Flow & Balance
During Q1 FY17, GameStop’s net cash flow used in operating activities was $256.8 million compared to net cash flow used in operating activities of $376.1 million in the year ago same period. At the close of books on April 29, 2017, GameStop had cash and cash equivalents balance of $311.9 million versus $473.6 million at the close of books on April 30, 2016. Additionally, the Company’s long-term debt stood at $815.7 million as on April 29, 2017, compared to $812.4 million as on April 30, 2016.
GameStop reiterated its full year FY17 diluted earnings per share guidance range of $3.10 to $3.40 and comparable store sales range of -5.0% to 0.0%.
On Monday, June 19, 2017, GameStop’s stock closed the trading session at $20.80, climbing 1.02% from its previous closing price of $20.59. A total volume of 2.13 million shares were exchanged during the session. Shares of the Company have a PE ratio of 6.17 and have a dividend yield of 7.31%. The stock currently has a market cap of $2.17 billion.
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