Video game retailer GameStop Corporation (NYSE:GME) looks to show off its growth in collectibles and improving profitability when the company reports second-quarter financial results Tuesday after market close.
Here’s a look at the earnings estimates, what analysts are saying and key items to watch.
Earnings Estimates: Analysts expect GameStop to report second-quarter (Q2) revenue of $823.25 million, up from $798.30 million in last year’s second quarter, according to data from Benzinga Pro.
The company missed analyst estimates for revenue in seven straight quarters. It also missed estimates in eight of the last 10 quarters overall.
Analysts expect the company to report 16 cents in earnings per share, up from 1 cent per share in earnings from last year’s Q2.
The company has beaten analyst estimates for earnings per share in two straight quarters and three of the last four quarters. Overall, the company has beaten analyst estimates for earnings per share in six of the last 10 quarters overall.
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What Analysts Are Saying: GameStop is not widely covered by analysts and hasn’t been for years.
Wedbush Securities analyst Michael Pachter, one of the few analysts covering the stock, remains bearish on the retailer.
Pachter’s last investor note said the company’s Bitcoin (CRYPTO: BTC) investments wouldn’t be enough to excite investors. The analyst said there remain no signs of a turnaround in the company’s core business.
Pachter has an Underperform rating on GameStop with a $13.50 price target. The majority of the company’s valuation comes from $12.50 per share in cash, securities and cryptocurrency, Pachter said.
“It is difficult to understand why any investor would be willing to pay more than 2x cash value for the possibility of GameStop converting more of its cash into Bitcoin, especially since these investors could invest in Bitcoin or a Bitcoin ETF themselves,” Pachter said.
The positive for GameStop is its growth in trading cards, according to the analyst.
“GameStop’s foray into the trading card business appears to be the only recent business venture to see modest success.”
Pachter said GameStop’s stock price is at a level that “overlooks the many challenges ahead.”
Key Items to Watch: Trading cards are a positive for the company, according to Pachter. The growth comes as the sector sees significant growth and sales at auctions.
GameStop formed several key partnerships with the trading card grading company PSA. Together, they recently launched a blind bag style “Power Packs.”
GameStop CEO Ryan Cohen considers the collectibles space to be a natural extension for the company and hinted at more growth coming from that area.
In the first quarter, Collectibles revenue grew to $211.5 million, the only of the three main sectors that saw year-over-year growth. That business segment is helping to offset declines in video game hardware, accessories and software.
Collectibles also come with higher margins, which are helping the company improve its profitability. The company has posted adjusted earnings per share profits in five of the last six quarters, after year’s of losses.
GameStop disclosed buying 4,710 Bitcoin between May 3 and June 10. The company paid somewhere between $93,399.86 and $111,970.17 for the Bitcoin during that time period. With Bitcoin currently trading at $112,383.77, the company’s Bitcoin holdings have gained in value, which could be reflected in the financials.
Investors and analysts will be closely watching to see if GameStop bought more Bitcoin in the quarter or is announcing plans to do so. Cohen said the company will not be turning into a Bitcoin treasury company, instead buying Bitcoin to hedge against inflation.
Cohen said the company’s $9 billion in cash would be deployed responsibly for areas with high upside and limited downside.
GameStop went multiple quarters without hosting a conference call.
GME Price Action: GameStop stock is up 2.3% to $23.13 on Monday. Its 52-week trading range is from $19.31 to $35.81. GameStop shares are down 25% year-to-date in 2025.
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