GameStop (GME) Misses Street 4Q Forecasts

Shares of GameStop Corp. (GME) are down $1.32 to $37.47 after the company released its earnings results on Thursday. The video game operator reported fourth quarter non-GAAP EPS of $2.15 vs. $2.17 consensus on $3.48 billion in revenue, down 5.6% from a year ago and below views for $3.59 billion. Net income was $244.1 million, or $2.23 per share, compared to $220.5 million, or $1.89/shr, in the prior year quarter.

For the full-year 2014, the company reported net earnings of $393.1 million, or $3.47 per share. Net sales were $9.30 billion, a 2.8% increase compared to $9.04 billion in fiscal 2013.

For Q1/15, GME provided EPS guidance of $0.53-$0.60 versus consensus of $0.67 per share.

On valuation measures, GameStop Corp. Cl A shares, which currently have an average 3-month trading volume of 1.44 million shares, trade at a trailing-12 P/E of 12.07, a forward P/E of 9.60 and a P/E to growth ratio of 0.78. The median Wall Street price target on the name is $48.00 with a high target of $64.00. Currently ticker boasts 12 ‘Buy’ endorsements, compared to 6 ’Holds’ and no ‘Sell’.

Profitability-wise, GME has a t-12 profit and operating margin of 3.89% and 6.67%, respectively. The $4.21 billion market cap company reported $610 million in cash in its most recent quarter, compared to $536.2 from the corresponding period in 2013.

GME currently prints a one year return of about 9% and a year-to-date return of around 19%.

The chart below shows where the equity has traded over the last 52 weeks.

GameStop Corp. is a multichannel video game operator and a wireless services retailer. The company was founded in 1994 and is headquartered in Grapevine, Texas.

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