GME - Embedded Expectations Analysis - 2018 02 05
─ GameStop Corp. (GME:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 11.3x Uniform P/E, which implies relatively bearish market expectations. Moreover, management has concerns about momentum, sales, and profits─ Specifically, management may lack confidence in their ability to sustain momentum in their video game segment, and may be concerned about their ability to execute on their holiday sales plans. Furthermore, they may also be concerned about the sustainability of increasing consolidated sales comps and hardware sales, and may also be concerned about further declines in consolidated operating earnings. Additionally, they may lack confidence in their ability to drive greater gross profit with current programs and promotions, and may be concerns about the constrained supply of the iPhone X
GameStop is a multichannel video game and licensed consumer products retailer. The company's products and services includes: New Video Game Hardware, which provides video game platforms from manufacturers; New Video Game Software, which provides new video game software for existing and certain prior generation consoles from manufacturers, including Sony, Nintendo and Microsoft; Video Game Accessories, which consist primarily of controllers, gaming headsets, virtual reality products, and memory cards; and Digital, which sells a variety of digital currency and has developed technology to sell downloadable content and full-game downloads in its stores and on its U.S. website.
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