$GameStop(GME)$ is expected to release their Q4 2024 earnings result on 25 March 2025 after the market close.
Analyst are predicting earnings to come in 8 cents per share and $1.48 billion in revenue. Do note that GME remains volatile so we need to watch updates like store portfolio and new ventures, including autograph authentication closely.
How investors sentiment and trading would be another way to see if GME have been on a MEME stock run.
GameStop (GME) Earnings Forecast
Next quarter’s earnings estimate for GME is $0.08 with a range of $0.07 to $0.09. The previous quarter’s EPS was $0.06. GME beat its EPS estimate 50.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 59.84% of the time in the same period. In the last calendar year GME has Outperformed its overall industry.
GameStop (GME) Sales Forecast
Next quarter’s sales forecast for GME is $1.48B with a range of $1.45B to $1.50B. The previous quarter’s sales results were $860.30M. GME beat its sales estimates 0.00% of the time in past 12 months, while its overall industry beat sales estimates 56.21% of the time in the same period. In the last calendar year GME has Preformed in-line its overall industry.
Key Factors Influencing GameStop's Q4 2024 Earnings
Revenue Trends
GameStop has faced declining revenue due to the industry shift toward digital game downloads and weaker demand for physical media. Q4 (holiday season) is typically its strongest quarter, but year-over-year (YoY) comparisons may still show pressure.
Cost-Cutting Measures
The company has focused on reducing operating expenses (e.g., closing underperforming stores, streamlining operations). This could improve profitability even if revenue declines.
Balance Sheet Strength
GameStop cash on hand for 2024 was $1.199B, a 13.76% decline from 2023. ·GameStop cash on hand for 2023 was $1.391B, a 9.38% increase from 2022. GameStop holds a significant cash reserve from meme-stock-driven equity offerings in 2021. This provides liquidity but does not address core business challenges.
Strategic Initiatives
Efforts to pivot into e-commerce, NFTs, or blockchain have yet to gain meaningful traction. Updates on new partnerships or business models (e.g., collectibles, PC hardware) will be critical for long-term optimism.
Meme Stock Dynamics
Volatility driven by retail investor sentiment, rather than fundamentals, may overshadow earnings results. Short-term stock movements could diverge from financial performance.
Expectations
Revenue: Likely flat to slightly down YoY, with potential upside from holiday console sales (e.g., PlayStation 5, Xbox Series X).
Profitability: Narrowed losses or a surprise profit due to cost discipline, though sustainability remains uncertain.
Guidance: Management’s commentary on 2025 strategy (e.g., store footprint, digital transformation) will be closely watched.
GameStop (GME) Individual Investors Matters
The ownership structure of GameStop (GME) stock is a mix of institutional, retail, and individual investors. Approximately 30.35% of the company’s stock is owned by Institutional Investors, 0.03% is owned by Insiders, and 69.62% is owned by Public Companies and Individual Investors.
This would mean that investors sentiment and how they would be trading on GME matter, on top of the earnings result.
Technical Analysis - Exponential Moving Average (EMA)
There are some headwinds and challenges which cannot be ignored, there is structural challenges where the gaming industry’s shift to digital distribution and subscription services (e.g., Xbox Game Pass) continues to erode GameStop’s core business.
There is also leadership uncertainty where executive turnover and vague strategic communication from Chairman Ryan Cohen could weigh on investor confidence.
From the technical, we are seeing investors having confidence in GME where it is now trading above the 50-day period and RSI is also increasing moving away from the oversold region, so we might see a pump and dump situation on GME before and after the earnings.
Summary
GameStop’s Q4 2024 earnings may reflect incremental operational improvements but are unlikely to signal a fundamental turnaround. While cost cuts might boost short-term metrics, long-term viability hinges on successful reinvention.
Appreciate if you could share your thoughts in the comment section whether you think GME could turn in a better-than-expected EPS with a significant improved cost control.
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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