Research Desk Line-up: Conn's Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on GameStop Corp. (NYSE: GME), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GME, following the Company's announcement of its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 25, 2017. The Grapevine, Texas-based Company reported a 3.8% y-o-y growth in its total global sales, outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Electronics Stores industry. Pro-TD has currently selected Conn's, Inc. (NASDAQ: CONN) for due-diligence and potential coverage as the Company announced on June 06, 2017, its financial results for Q1 FY18 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Conn's when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GME; also brushing on CONN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=GME

http://protraderdaily.com/optin/?symbol=CONN

Earnings Reviewed

During the three months ended on April 29, 2017, GameStop reported net sales of $2.05 billion compared to $1.97 billion recorded at the end of Q1 FY16. Net sales numbers topped market expectations of $1.89 billion. The Company attributed the growth in net sales to an increase in comparable store sales of 2.3% y-o-y and an increase in sales in Technology Brands.

The video game retailer reported net income of $59.0 million, or $0.58 per diluted share, in Q1 FY17 compared to $65.8 million, or $0.63 per diluted share, in the prior year's comparable period. Meanwhile, the Company's adjusted net income for the reported quarter came in at $63.6 million, or $0.63 per diluted share, compared to $68.4 million, or $0.66 per diluted share, in the past year's same quarter. Meanwhile, Wall Street had expected the Company to report adjusted net income of $0.49 per diluted share.

Operating Metrics

In the reported quarter, GameStop's profit came in at $702.5 million, or 34.3% of net sales, compared to $675.5 million, or 34.3% of net sales, in the year ago same period. The Company's operating earnings for Q1 FY17 stood at $101.1 million, or 4.9% of net sales, versus $114.0 million, or 5.8% of net sales, in the first quarter of FY16.

Segment-Performance

The Company's New video game hardware segment's net sales grew from $312.9 million in Q1 FY16 to $389.9 million in the reported quarter. The segment's gross profit also increased to $38.1 million in Q1 FY17 from $28.3 million in Q1 FY16.

During Q1 FY17, New video game software segment reported net sales of $520.5 million compared to $567.2 million recorded in the prior year's same quarter. Meanwhile, the segment's gross profit came in at $113.7 million in Q1 FY17 compared to $127.9 million in Q1 FY16.

GameStop's Pre-owned and value video game products segment's net sales were $526.2 million in Q1 FY17 which came in below the $560.9 million reported in Q1 FY16. Moreover, the segment's gross profit for the reported quarter was $253.7 million compared to $263.2 million in the previous year's corresponding quarter.

Video game Accessories segment's sales increased from $162.7 million in Q1 FY16 to $176.1 million in Q1 FY17. However, the segment's gross profit fell to $55.9 million in Q1 FY17 from $57.1 million in the year-ago same period.

The Company's Digital segment's net sales for the reported quarter came in at $44.1 million versus $42.8 million in Q1 FY16. The segment's gross profit for Q1 FY17 was $36.1 million versus $37.0 million in the year ago comparable quarter.

Technology Brands segment reported net sales of $201.4 million in Q1 FY17, up from $165.8 million in the last year's same period. The segment's gross profit also increased to $144.6 million in Q1 FY17 from $109.7 million in Q1 FY16.

In Q1 FY17, Collectibles segment's net sales were $114.5 million versus $82.3 million in Q1 FY16. The segment posted gross profit of $35.2 million in Q1 FY17, which came in above $28.6 million in Q1 FY16.

Cash Flow & Balance

During Q1 FY17, GameStop's net cash flow used in operating activities was $256.8 million compared to net cash flow used in operating activities of $376.1 million in the year ago same period. At the close of books on April 29, 2017, GameStop had cash and cash equivalents balance of $311.9 million versus $473.6 million at the close of books on April 30, 2016. Additionally, the Company's long-term debt stood at $815.7 million as on April 29, 2017, compared to $812.4 million as on April 30, 2016.

Earnings Guidance

GameStop reiterated its full year FY17 diluted earnings per share guidance range of $3.10 to $3.40 and comparable store sales range of -5.0% to 0.0%.

Stock Performance

On Monday, June 19, 2017, GameStop's stock closed the trading session at $20.80, climbing 1.02% from its previous closing price of $20.59. A total volume of 2.13 million shares were exchanged during the session. Shares of the Company have a PE ratio of 6.17 and have a dividend yield of 7.31%. The stock currently has a market cap of $2.17 billion.

--

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily