GameStop revenues expected to beat recession
Shares up slightly as analyst notes "one of the top growth stories in retailing"
Investors got behind US retailer GameStop yesterday as confidence grew over itsQ4 earnings, set for release tomorrow.
The firm is expected to announce good results on continued strong videogame sales, providing a beacon of light in a general climate of economic gloom.
Sales are expected to top USD 3.5 billion, 22 per cent up on last year, according to Forbes, while analysts predict continued growth for the company.
Sterne Agee's Arvind Bhatia expects earnings to grow by around 20 per cent for the next few years, noting that interactive is "one of the best places to be in the consumer space" at the moment.
And CL King & Associates' William Armstrong wrote that GameStop is "one of the top growth stories in retailing", maintaining a Buy recommendation.
The retailer's stock was up by as much as 4 per cent yesterday, before falling back to close up 43 cents at USD 27.05, a rise of 1.6 per cent. After hours trading saw that rise further, up an additional 2 per cent at the time of writing.