To The Moon

As we have seen some of $GameStop(GME)$’s peers in the specialty retail segment reported Q4 earnings results. We could look at some of them on what we can expect from GameStop.

$Best Buy(BBY)$'s revenues decreased 0.6% year on year, beating analyst estimates by 0.6% and Ulta reported revenues up 10.2% year on year, exceeding estimates by 0.8%. Best Buy traded down 2.7% on the results, and Ulta was down 3.5%.

Those investors who are already in the specialty retail segment have quite a consistent gain of 0.7% average over the last month. GameStop stock was up 8.8% during the same period. Market is expecting GameStop to have a price target of $6 ahead of their earnings, but it is currently trading at $14.85.

This quarter analysts are expecting GameStop's revenue to decline 7.9% year on year to $2.05 billion, a further deceleration on the 1.2% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

Gamestop Earnings Dates, Upcoming and Historical

GME last reported earnings on December 06, 2023 after the market close (AMC). The company held a conference call for investors at on . GME shares gained +10.2% the day following the earnings announcement to close at 16.36. Following its earnings release, 110 days ago, GME stock has drifted -7.6% lower. From the time it announced earnings, GME traded in a range between 13.01 and 18.59. The last price (15.12) is closer to the lower end of range.

Estimated implied straddle for upcoming earnings is 23.7%. Despite last quarter GameStop reported revenues of $1.08 billion, down 9.1% year on year, missing analyst expectations by 8.8%. Revenue also missed analysts' expectations, driven by worse-than-expected hardware and software sales.

But we do see a more than 10% positive price effect. So I would expect GameStop to give us at least 10% upside.

GameStop (GME) Potential Upside Prior Earnings

GME trading prior to its earnings is looking to attempt an upside, the buying sentiment have been building up, though some weakness just recently.

We could see another attempt for further upside, as we could see from last quarter, there is a possibility of upside even a less-than-expected earnings result come in.

GameStop (GME) Keltner Channel Shows Attempt to Upper Band For Upside

We can see that stock price is moving upwards from the middle band, attempting for the upper band. Though we are not seeing band in angled up, we could expect some upside move from GameStop after today (26 Mar).

I would expect GameStop to move into upper band after its earnings, and there will be some confirmation for us for GameStop future upside.

Summary

If we look at how GameStop have performed after its earnings result, despite the less-than-expected earnings, the stock could still garner a positive more than 10% move upside.

We could see some decline in revenue for GameStop, but we are also seeing investors interest in this stock, there might be a chance of moving this stock up.

Appreciate if you could share your thoughts in the comment section whether you think GameStop could give us another positive price effect after its earnings this quarter?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.