GameStop Guides Q2 Profit Up to $310M, Amends Debt Exchange to Include Cash
GME is trading near its 52-week low of $17.79 (4.0% above the low).
Summary
GameStop pre-announced Q2 results with net income of $290-310M, up from $168.6M a year ago, driven by $238M in gains on its eBay investment. Sales fell to $780-800M from $972.2M, but operating income more than doubled to $150-170M. The company also amended its $1.4B convertible note exchange to include $358.4M in cash, reducing dilution. This follows the Aug 3 announcement of the exchange and the June Q1 beat. The eBay stake is now a direct equity investment of 43.4M shares worth $4.947B. Full Q2 results are due Sept 8.
At the time of this announcement, GME was trading at $18.50 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: Benzinga.