GameStop Corp. (NYSE:GME) all set to earn revenue from all its units

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The value of GameStop Corp. (NYSE:GME)’s shares deviated by almost 16 percent within a year. The company wasn’t doing that great and it was mostly because of the cell games production. Things may take a turn for the better for GameStop Corp. (NYSE:GME) after its new consoles hit the market. These consoles are forcing the analysts to reevaluate GameStop Corp. (NYSE:GME) shares. The company is all geared up to make the most out of the markets where the video games products and software for PC entertainment are in great demand.

During the second quarter, GameStop Corp. (NYSE:GME)’s revenue went uphill by 25.1 percent and the company made 1.73 billion dollars on basis Year-over-Year. Since there was a great demand for Xbox one and PlayStation consoles, sales of comparable-store increased by 22%. Console sales made by the company doubled in the second quarter after new items were introduced in the market. The total revenue had big contributions from all the important units of the company including accessories and videos etc.

Company’s revival is indicated by a strong top line. Most of the people believed that the company’s revenue got a kick up by the introduction of new consoles into the market but the fact is that these consoles made up about 20 percent of the total revenue that was finalized. Major part of this increase was sponsored by selling the video games and consumer electronics. The revenue produced by GameStop (NYSE:GME)’s new video games came up to 15.6 percent which was mostly due to some new titles such as Mario kart 8 and Ubisoft’s Watch Dogs. It is being predicted that in the future putting out new games into the market will be the key to making handsome revenue.

Moreover the operating income doubled in size and became $36.7 million while the operating margin also stretched by about 70bps to become 2.1%. Fairly the company succeeded in showing 144 % increase in EPS – EPS went up to 22 cents. According to some recent polls taken by 55% members of PowerUp said that they still have not bought the new consoles; this could very well mean even stronger hardware sales in the company’s third quarter.

With new hardware sales, games sales will also pick up because those with new consoles would want to buy games for it too. To make the skyline even brighter for the company many top developers are in the process of taking out new titles of some huge names such as FIFA and Call of Duty; they are expected to come out in the second half of the current year. Apart from that Microsoft and Sony have also allowed their old games to be used by GameStop (NYSE:GME) consoles, which will do well for the company sales.

Moreover the company has expanded into the digital market after it acquired companies like Simply Mac and Spring Mobile. Since this market is growing very fast, this segment of GameStop Corp. (NYSE:GME) is soon going to contribute big bucks to the company’s overall revenue.

Near future looks great for GameStop Corp. (NYSE:GME) because almost all units of the company are all set to contribute to the overall revenue. Currently it is undervalued with a 13.5 PE ratio, but it seems things will soon change for the better.

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