GameStop: Bulls Loyal Despite Weak Video Game Sales
GameStop (GME) shares are showing impressive resiliency in the face of the fifth straight month of declining sales of video game hardware and software.
As I noted yesterday, July data from research firm NPD Group showed a 37 percent drop in video game hardware sales, and a 26 percent drop in console and handheld hardware sales. The report comes just days ahead of GameStop’s earnings report for its fiscal second quarter ended July, which is due before the open on Thursday, August 20.
Sterne Agee analyst Arvind Bhatia this morning responded to the NPD data by trimming his EPS estimates for GME; he now sees profits for the quarter of 23 cents a share, down from 28 cents.
