Analyst Lowers Estimates on GameStop Q217 Jul, 2012 By: Chris Tribbey
Dismal video game hardware and software sales in May and June will have a negative impact on GameStop’s second-quarter earnings, according to Michael Pachter, analyst with Wedbush Securities in Los Angeles.
In a note to investors, Pachter lowered Q2 GameStop revenue estimates to $1.56 billion from $1.61 billion, and earnings per share from 24 cents to 18 cents.
“Although an uneventful E3 failed to reignite sustained interest in video game stocks, we took away many positives for GameStop,” he wrote. “… We expect GameStop to capture a disproportionate share of sales for the year’s top releases, including the new Call of Duty, Halo, and Medal of Honor, among others.”
Pachter said he expects GameStop to have a “generous allocation” of Nintendo Wii U units when that system launches, and a “disproportionate share” of next-generation PlayStation and Xbox consoles, which are expected in late 2013.