GameStop Guides Q2 Net Income Up 72% on eBay Stake Gains
GME is trading near its 52-week low of $17.79 (4.1% above the low).
Summary
GameStop released preliminary Q2 results showing net income guidance of $290M-$310M, up from $168.6M a year ago, driven by $238M in gains from its eBay stake. Operating income is guided to $150M-$170M versus $66.4M last year. Net sales are expected to decline to $780M-$800M from $972.2M due to the Nintendo Switch 2 launch comparison, store closures, and the France divestiture. The company converted its derivative position on eBay into a direct equity investment of 43.4M shares valued at $4.947B, reducing cash. This follows the hostile bid for eBay and the $2B buyback authorization from June. Full Q2 results are due Sept 8.
At the time of this announcement, GME was trading at $18.52 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.3B. The 52-week trading range was $17.79 to $28.10. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.