Author Topic: GME - Game Stop Corp  (Read 32762 times)

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #130 on: January 13, 2020, 01:22:40 PM »
Horrible results for the nine-week holiday period. Despite just lowering guidance in a big way with Q3 results, they they "now expect fiscal 2019 earnings to be below guidance"

https://gamestop.gcs-web.com/news-releases/news-release-details/gamestop-reports-2019-holiday-sales-results


5xEBITDA

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Re: GME - Game Stop Corp
« Reply #131 on: January 13, 2020, 01:41:02 PM »
The fine print is that they did not lower EPS guidance despite revising adj. net income downward...this means the Company has been buying back more stock. I suspect they were the ones responsible for the rally shares have had between their last earnings call and now. They also mentioned that liquidity will be $900 million vs. $1 billion, and I suspect the difference being cash they had but now spent. Very interested to see 4Q19 / FY19 results...I suspect they will be in a precarious cash situation.

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #132 on: January 13, 2020, 02:13:57 PM »
The fine print is that they did not lower EPS guidance despite revising adj. net income downward...this means the Company has been buying back more stock. I suspect they were the ones responsible for the rally shares have had between their last earnings call and now. They also mentioned that liquidity will be $900 million vs. $1 billion, and I suspect the difference being cash they had but now spent. Very interested to see 4Q19 / FY19 results...I suspect they will be in a precarious cash situation.

Those are all smart thoughts

I think (and this is very much just my opinion since management has not openly said this) the plan is to close a bunch of stores in Q1 of FY 2020 and use the liquidity from inventory liquidations to buttress the balance sheet until the start of the next console cycle. I don't think this is a particularly smart plan, but I suspect it is more-or-less how management is thinking about the situation.

given2invest

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Re: GME - Game Stop Corp
« Reply #133 on: January 13, 2020, 02:54:33 PM »
The fine print is that they did not lower EPS guidance despite revising adj. net income downward...this means the Company has been buying back more stock. I suspect they were the ones responsible for the rally shares have had between their last earnings call and now. They also mentioned that liquidity will be $900 million vs. $1 billion, and I suspect the difference being cash they had but now spent. Very interested to see 4Q19 / FY19 results...I suspect they will be in a precarious cash situation.

Huh?  I don't read that *at all*.   First, it's a LOSS now so of course they won't hit the previous per share "profit" guidance.  If they have a net loss, no matter how many shares outstanding it's a per share net loss.  In fact, the less shares outstanding, the higher the per share net loss!

"The Company, while not updating earnings per share guidance at this time, now expects an adjusted net loss for the fiscal year, with adjusted earnings per diluted share impacted by the further deceleration in sales in December. "

It's very poorly worded but I wouldn't read into it as you have.  I don't have a position in this (never have) but continue to be fascinated by the amount of shares they bought back.

5xEBITDA

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Re: GME - Game Stop Corp
« Reply #134 on: January 13, 2020, 03:34:15 PM »
The fine print is that they did not lower EPS guidance despite revising adj. net income downward...this means the Company has been buying back more stock. I suspect they were the ones responsible for the rally shares have had between their last earnings call and now. They also mentioned that liquidity will be $900 million vs. $1 billion, and I suspect the difference being cash they had but now spent. Very interested to see 4Q19 / FY19 results...I suspect they will be in a precarious cash situation.

Huh?  I don't read that *at all*.   First, it's a LOSS now so of course they won't hit the previous per share "profit" guidance.  If they have a net loss, no matter how many shares outstanding it's a per share net loss.  In fact, the less shares outstanding, the higher the per share net loss!

"The Company, while not updating earnings per share guidance at this time, now expects an adjusted net loss for the fiscal year, with adjusted earnings per diluted share impacted by the further deceleration in sales in December. "

It's very poorly worded but I wouldn't read into it as you have.  I don't have a position in this (never have) but continue to be fascinated by the amount of shares they bought back.

Hm, you're actually most likely correct and it was me who read the release too quickly.