After the closing bell on Thursday, GameStop (GME) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside GME's Results
The company reported earnings of $244.1 million, or $2.23 per share, up from $220.5 million, or $1.89 per share, last year. Excluding special items, EPS was $2.15 – below analysts’ view of $2.17.
Revenue declined 5.6% to $3.48 billion from $3.68 billion last year. Analysts expected to see revenue of $3.60 billion.
Looking ahead, the company expects to see first quarter EPS between 53 and 60 cents. Analysts expect to see EPS of 66 cents. For FY2015, GME expects EPS to be between $3.60 and $3.80, which falls below analysts’ view of $4.04.
The Changing Video Game Industry
Shares of GameStop declined on Friday morning, following Thursday’s earnings release. The company missed analysts’ estimates for both earnings and revenue during the quarter, and released a weak outlook for the year.
The retailer has struggled to keep up with the changing video game industry. GME has a large focus on re-selling pre-owned video games and consoles. As next-generation consoles are released, demand for used games has suffered.
Mutual Funds to Watch
Investors interested in GME may also consider the following mutual funds as an alternative to investing directly in the stock. The funds below currently hold the largest stakes in the company.
|FDSTX||SunAmerica Focused Dividend Strategy||5.86%|
|FLPSX||Fidelity® Low-Priced Stock||5.10%|
|FLVCX||Fidelity® Leveraged Company Stock||2.30%|
The Bottom Line
The funds listed above allow investors to gain exposure to GME while remaining diversified. Investors interested in GME may also be interested in Best Buy (BBY)
If you’ve enjoyed this article, sign up for the free MutualFunds.com newsletter; we’ll send you similar content weekly.