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
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
|FDSTX||SunAmerica Focused Dividend Strategy||5.86%|
|FLPSX||Fidelity® Low-Priced Stock||5.10%|
|FLVCX||Fidelity® Leveraged Company Stock||2.30%|
The Bottom Line
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