Investing News

GameStop Q2 2022 Revenue Misses Expectations

Key Takeaways

  • GameStop’s losses per share were narrower than analysts predicted.
  • The company’s revenue failed to meet expectations.
  • GameStop announced that it had entered into a partnership with the cryptocurrency exchange FTX.

Source: Predictions based on analysts’ consensus from Visible Alpha

GME Financial Results: Analysis

GameStop Corp. (GME) reported mixed results for Q2 FY 2022. The company reported losses per share of $0.36, slightly narrower than analyst predictions. GameStop completed a four-for-one stock split in July. On the other hand, the company’s revenue came in at $1.1 billion, down 4.0% year over year (YOY) and behind consensus estimates that called for $1.3 billion in revenue for the quarter. GameStop is regarded as one of the first meme stocks that arose out of the r/wallstreetbets subreddit in 2020.

GME Partnership With FTX

GameStop announced a partnership with Bahamas-based cryptocurrency exchange FTX at the time of its earnings release. The partnership will see the company collaborate with the exchange on new ecommerce and online marketing initiatives. GameStop has recently expanded its ventures into the crypto and crypto-adjacent spaces, as it launched a non-fungible token (NFT) marketplace in July.

GME Outlook and Stock Performance

GameStop did not provide forward guidance in its earnings release.

Shares of GameStop traded up about 5.4% in extended-hours trading immediately following the company’s earnings report. Overall, GameStop shares have provided a one-year trailing total return of -51.7% compared with the S&P 500’s total return of -12.0%, as of Sept. 7, 2022.

GameStop’s next earnings report (for Q3 FY 2022) is anticipated to be released on Dec. 13, 2022.

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