GameStop Corp (NYSE:GME) will report its second quarter 2023 financial results after the market closes on Wednesday, September 6, 2023, and investors will be looking for evidence the company is achieving profitability through e-commerce and cost-cutting strategies, according to TheStreet.
The world's largest video game retailer is expected to post a 2Q loss per share of $0.14, a 60% year-over-year improvement, while revenue should remain flat at $1.14 billion.
Revenue upside would likely come from sales of Nintendo's The Legend of Zelda: Tears of the Kingdom.
Shareholders will also have their sights on any further decline in sales from new gaming software releases and lower revenue from pre-owned software and hardware, as well as collectibles, which weighed on the company’s 1Q results.
Cost-cutting measures during the period, though, led to reduced expenses and an improved balance sheet, with GameStop ending the quarter with cash and cash equivalents of $1.1 billion as of April 29, 2023.
GameStop has beaten revenue estimates for five quarters in the last two years.
Shares of GameStop rose 1.4% to $18.63 in late-afternoon trading on Wednesday and have gained 8% year to date.
Contact Sean at sean@proactiveinvestors.com