GameStop Q4 Earnings Beat Estimates, Collectibles Sales Rise Y/Y

GameStop Corp. GME posted fourth-quarter fiscal 2024 results, wherein the top line missed the Zacks Consensus Estimate and declined year over year. On the contrary, the bottom line beat the consensus mark and improved from the year-ago period.GameStop’s Quarterly Performance: Key InsightsGME posted adjusted earnings per share of 30 cents in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate for adjusted earnings of 9 cents. The company reported adjusted earnings of 22 cents in the prior-year quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.GameStop reported net sales of $1,282.6 million, which missed the consensus estimate of $1,450 million. Also, the metric decreased 28.5% from $1,793.6 million in the year-ago quarter. The decrease in consolidated net sales was caused by lower sales across most categories.By sales mix, hardware and accessories sales fell 33.7% to $725.8 million from $1.09 billion in the year-ago quarter. Software sales were $286.2 million, down 38.5% from $465.3 million in the year-ago quarter. Sales in the collectibles unit increased 15.8% to $270.6 million from $233.7 million in the year-ago quarter.GameStop Corp. Price, Consensus and EPS Surprise  GameStop Corp. price-consensus-eps-surprise-chart | GameStop Corp. QuoteInsight Into GME’s Margins & ExpensesGross profit decreased 13.3% to $363.4 million from $419.2 million in the year-ago quarter. However, the gross margin expanded 490 basis points (bps) to 28.3% from 23.4% in the fourth quarter of fiscal 2023.Adjusted selling, general and administrative (SG&A) expenses declined 22.3% to $279 million from $358.9 million in the year-ago quarter. As a percentage of net sales, adjusted SG&A expenses were 21.8%, up 180 bps from 20% in the year-ago period.GameStop reported an adjusted EBITDA of $96.5 million, up 9.7% from an adjusted EBITDA of $88 million in the same quarter last year. We note that the adjusted EBITDA margin expanded 260 bps year over year to 7.5% in the quarter under review.The company’s adjusted operating income was $84.4 million in the reported quarter compared with an adjusted operating income of $60.3 million in the prior-year period. The adjusted operating margin increased 320 bps year over year to 6.6%.GME Stock Past Three-Month Performance Image Source: Zacks Investment Research GME’s Financial Snapshot: Cash, Debt & Equity OverviewGameStop ended the fiscal fourth quarter with cash and cash equivalents of $4.76 billion, marketable securities of $18 million, net long-term debt of $6.6 million, and stockholders’ equity of $4.93 billion. Net merchandise inventory totaled $480.2 million at the end of the fiscal quarter, down from $632.5 million in the same period last year.During the 13 weeks ended Feb. 1, 2025, the net cash flow provided by operations was $162.3 million. The free cash flow for the period totaled $158.8 million, while capital expenditure amounted to $3.5 million.In the fiscal fourth quarter, the company completed the divestiture of its Italy operations and the closure of its stores in Germany.Shares of this Zacks Rank #3 (Hold) company rose 8.3% in the after-market trading session yesterday. In the past three months, it has lost 21.1% compared with the industry’s 3.5% decline.Key PicksA few better-ranked stocks are PlayAGS, Inc. AGS, Bally's Corporation BALY and Wynn Resorts WYNN.PlayAGS is a designer and supplier of electronic gaming machines and other products and services for the gaming industry. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for AGS’ current financial year sales indicates growth of 4.8% from the prior year’s reported figure. The company has a trailing four-quarter average earnings surprise of 199.8%.Bally's Corp is a casino-entertainment company. It currently carries a Zacks Rank of 2 (Buy). The consensus estimate for Bally's Corp’s current financial-year earnings and sales indicates growth of 64.2% and 2.7%, respectively, from the 2024 reported figures. BALY has a negative trailing four-quarter average earnings surprise of 166.2%.Wynn Resorts, together with its subsidiaries, is a leading developer, owner and operator of casino resorts. It has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for Wynn Resorts’ current financial-year earnings and sales indicates declines of 12% and 0.4%, respectively, from the 2024 reported figures. WYNN has a trailing four-quarter average earnings surprise of 17.4%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report GameStop Corp. (GME): Free Stock Analysis Report PlayAGS, Inc. (AGS): Free Stock Analysis Report Bally's Corporation (BALY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks