Filed under: Earnings reports, Analyst upgrades and downgrades, Microsoft (MSFT), Amazon.com (AMZN), Sony Corp ADR (SNE), Best Buy (BBY), Technical Analysis, Stocks to Buy

If keeping up with the latest video games stands high on your list of priorities, there is an outfit in Grapevine, Texas that makes it easy. It has stores around the world and operates a pair of web sites, too.

GameStop Corporation (NYSE: GME) is the world’s largest video game and entertainment software retailer, offering software, hardware and game accessories for the PC, as well as video game systems from Sony (NYSE: SNE), Nintendo (NTDOY) and Microsoft (NASDAQ: MSFT). The firm also owns two e-commerce sites and Game Informer magazine, a leading video and computer game publication. GameStop operates 4,954 retail stores worldwide. Amazon.com (NASDAQ: AMZN) and Best Buy (NYSE: BBY) are competitors.

The company surprised investors last week, when it reported Q2 EPS of 14 cents and revenues of $1.34 billion. Analysts had been expecting 9 cents and $1.19 billion. The CEO said, “Our second quarter performance was very broad-based, with the U.S., Canada, Australia and Europe all exceeding expectations.” Management also guided Q3 EPS to 19-21 cents (18 cent consensus), FY08 EPS to $1.45-1.48 ($1.46 consensus) and FY08 revenues to $6.38-$6.49 billion ($6.45B consensus). Two brokerages subsequently declared the issue a “strong buy” and three others said “buy”. Price targets were set in the range $52-60.

Continue reading GameStop (GME): The number one video game retailer in the world

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This entry was posted on Wednesday, August 29th, 2007 at 5:32 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.