GameStop FY2024 Q1 Third-party Analysts' Stock Forecast & Preview
Part 1: GameStop(GME) Stock Latest News
1. Latest GameStop(GME) Stock Price, 11/21/2024
GameStop (GME) saw a wild 74% surge in its share price on May 13, 2024, sparked by a cryptic social media post from the "Roaring Kitty" trader Keith Gill. Gill, who had been absent from social media for years, simply posted a picture of a man leaning forward in a chair. This led the retail investor crowd to speculate that Gill was signaling a renewed interest in GameStop, driving a frenzy of buying.
The surge continued in the following days as fear of missing out drew more speculative traders into the stock. However, the rally was unlikely to persist long-term. GameStop's 2023 financial results showed declining revenue of $5.3 billion, down from $5.9 billion in 2022. While it eked out a small adjusted profit of $64.7 million, this was relatively insignificant for the size of the business.
Fundamentally, the GameStop business model appeared challenged, with limited growth prospects going forward. After skyrocketing 74% on May 13th, driven purely by speculation rather than fundamentals, GameStop shares remained highly volatile in 2024 as the "meme stock" phenomenon persisted. However, long-term value investors remained cautious about the company's business prospects.
2. GameStop(GME) Stock Performance, 11/21/2024
- Last 7 Days: +7.52%
- Last 1 Month: +37.44%
- Last 6 Months: +49.74%
- Last 1 Year: +133.20%
- YTD: +62.29%
Part 2：GameStop(GME) FY2023 Q4 Earnings Report Recap
1. Key Indicators and Historical Earnings Report
GameStop FY2023 Q4 EPS was $0.04, YOY +500.00%
GameStop PE Ratio today is 203.21.
GameStop FY2023 Q4 revenue was $798.30M, YOY -31.41%
GameStop FY2023 Q4 FCF was $65.50M, YOY -31.41%
GameStop FY2023 Q4 Current Ratio was 6.23, YOY +233.06%
GameStop FY2023 Q4 ROA was +0.36%, YOY +482.37%
GameStop FY2023 Q4 ROE was +0.52%, YOY +335.77%
GameStop FY2023 Q4 gross margin was +31.17%, YOY +18.57%
GameStop FY2023 Q4 net margin was +1.85%, YOY +870.58%
For more information, such as definitions and explanations of the above technical terms, please view: Interpretation of Key Indicators>>
2. GameStop Financial Statement Analysis
FY2023 Q4:
Revenue:
Net sales were $1.794 billion in Q4 2023, down 19.5% from $2.226 billion in Q4 2022.
Sales Mix:
Hardware and accessories made up 61.0% of net sales.
Software was 26.0% of net sales.
Collectibles represented 13.0% of net sales.
Gross Profit:
Gross profit was $419.2 million or 23.4% of net sales in Q4 2023, compared to $499.8 million or 22.4% in Q4 2022.
Operating Expenses:
Selling, general and administrative (SG&A) expenses were $359.2 million or 20.0% of net sales in Q4 2023, lower than $453.4 million or 20.4% in Q4 2022.
Asset impairment charges were $4.8 million versus $0.2 million in the prior year quarter.
Profitability:
Operating income was $55.2 million in Q4 2023, up from $46.2 million in Q4 2022.
Net income was $63.1 million in Q4 2023, increasing 30.9% from $48.2 million in Q4 2022.
Earnings Per Share:
Diluted EPS was $0.21 in Q4 2023 versus $0.16 in Q4 2022.
Cash Flow:
Operating cash flow was negative $11.0 million in Q4 2023 compared to positive $338.2 million in Q4 2022.
Free cash flow was negative $18.7 million versus positive $326.6 million in the prior year quarter.
In summary, while GameStop's quarterly revenue declined year-over-year, the company reported improved profitability metrics including higher operating income, net income and EPS in Q4 2023 compared to Q4 2022 by managing costs and gross margins effectively despite the sales decline.
FY2023 Full Year:
Revenue:
Net sales for fiscal year 2023 were $5.273 billion, down 11.0% from $5.927 billion in fiscal 2022.
Gross Profit:
Gross profit was $1.294 billion or 24.5% of net sales in fiscal 2023, compared to $1.372 billion or 23.1% in fiscal 2022.
Operating Expenses:
Selling, general and administrative (SG&A) expenses were $1.324 billion or 25.1% of net sales in fiscal 2023, lower than $1.681 billion or 28.4% in fiscal 2022.
The company recorded $4.8 million in asset impairment charges in fiscal 2023 versus $2.7 million in fiscal 2022.
Profitability:
Operating loss was $34.5 million in fiscal 2023, compared to an operating loss of $311.6 million in fiscal 2022.
Net income was $6.7 million in fiscal 2023, versus a net loss of $313.1 million in fiscal 2022.
Adjusted EBITDA was $64.7 million in fiscal 2023, compared to negative $192.7 million in fiscal 2022.
Earnings Per Share:
Basic and diluted earnings per share were $0.02 in fiscal 2023.
In fiscal 2022, the basic and diluted loss per share was $1.03.
Balance Sheet:
Cash and cash equivalents were $921.7 million as of February 3, 2024.
Total outstanding debt was $28.5 million, mainly comprising a low-interest unsecured French government loan.
In summary, while GameStop's revenue declined year-over-year, the company significantly reduced operating expenses and returned to profitability in fiscal 2023 after a net loss in the prior year. The company maintained a strong cash position with limited debt on its balance sheet.
3. FY 2023 Q4 Business Data
Hardware and Accessories:
Net sales of $1,094.6 million.
Represented 61.0% of total net sales in Q4 2023.
This category includes sales of new and pre-owned hardware, accessories, hardware bundles, interactive game figures, strategy guides, mobile and consumer electronics.
Software:
Net sales of $465.3 million.
Accounted for 26.0% of total net sales.
Includes sales of new and pre-owned gaming software, digital software and PC entertainment software.
Collectibles:
Net sales of $233.7 million.
Made up 13.0% of total net sales.
This segment covers sales of collectible products.
Part 3：GameStop(GME) FY2024 Q1 Earnings Report Forecast & Preview
1. GameStop FY2024 Q1 Earnings Forecast By Independent, Third-party Analyst Ratings, 11/21/2024
GameStop earnings date is coming soon! Following an extensive evaluation of GameStop's financial data, revenue, and stock trends over the last few quarters by more than 1 third-party financial analysts, GameStop Stock has been given a "Sell" rating. Analysts forecast a average stock price of $10.00 for the next 12 months.
- Analyst Rating: Sell
- GameStop Target Price: $10.00
- 2024 Q1 EPS Forecast: $0.00
- 2024 Q1 Revenue Forecast: $887.68M
- 2024 Q1 EBIT Forecast: $-50.30M
2. GameStop Forecast By Technical Analysis, 11/21/2024
Technical Indicators | Value | Signal |
KDJ | ||
OSC | ||
BIAS | ||
RSI(12) | ||
RSI(24) | ||
MACD | ||
MA | ||
BOLL |
For more information, such as definitions and explanations of the above technical terms, please view: Interpretation of technical indicators>>
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