Those were the words that Benchmark analyst Mike Hickey, quoting a Warren Zevon song, used to describe GameStop (GME) after it became the latest retailer–along with Finish Line (FINL)–to tumble following the release of its earnings.
GameStop actually beat earnings–it reported a profit of $2.38 a share, topping forecasts for $2.29–but missed on sales, and reported that same-store sales had dropped 16%. To top it off, GameStop also said that it would close 150 or so stores, and stop providing quarterly earnings and same-store sales guidance.
Benchmark’s Hickey sees GameStop’s problems getting worse before they get better:
We believe the Companys core business model; the physical distribution of hardware, software and used product through a traditional retail network will be increasingly displaced from growing consumer adoption of digital/streaming/subscription content service channels and competitive pressure from mobile platforms, an ecosystem we anticipate will extend to the living room. We remain concerned investor confidence balances precariously over the perceived long-term value of the core business model; a potential market/operational disruption could shift focus to the outmoded nature of physical delivery while resetting an aggressive short thesis that can be challenging to disprove. We believe the console will complete the turn to digital within the next five years, effectively dislocating GameStops performance foundation.
value stocks: Fiserv, Inc.(FISV)
- [By Lee Jackson]
These companies also reported insider selling last week:Corcept Therapeutics Inc. (NASDAQ: CORT), Customers Bancorp Inc. (NYSE: CUBI), Ellie Mae Inc. (NYSE: ELLI), Fiserv Inc. (NASDAQ: FISV) and Ulta Beauty Inc. (NASDAQ: ULTA).
value stocks: Penn West Petroleum Ltd(PWE)
- [By WWW.MONEYSHOW.COM]
This experienced team appeared to have what it takes to lead acquiring Penn West Petroleum (PWE) through a crisis. And the group has taken bold steps to deleverage the company, selling assets while cutting expenses and eliminating the dividend.
value stocks: Noah Holdings Ltd.(NOAH)
- [By Monica Gerson]
Noah Holdings Limited (ADR) (NYSE: NOAH) is estimated to post financial results for its latest quarter.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
value stocks: Formula Systems (1985) Ltd.(FORTY)
- [By Lisa Levin]
In trading on Thursday, technology shares fell by 0.32 percent. Meanwhile, top losers in the sector included Mitek Systems, Inc. (NASDAQ: MITK), down 13 percent, and Formula Systems (1985) Ltd. (ADR) (NASDAQ: FORTY), down 8 percent.
- [By Lisa Levin]
On Friday, technology shares rose by 0.26 percent. Meanwhile, top gainers in the sector included Applied Materials, Inc. (NASDAQ: AMAT), up 9 percent, and Formula Systems (1985) Ltd. (ADR) (NASDAQ: FORTY) up 19 percent.
value stocks: Viacom Inc.(VIA)
- [By Keith Noonan]
While 2016 played host to a range of films that underperformed, the biggest flops belonged to Disney (NYSE:DIS), Viacom (NASDAQ:VIA) (NASDAQ:VIAB) and Lions Gate Entertainment (NYSE:LGF.A). Click through the presentation below to get the details on the year’s five biggest film flops and to learn what last year’s movie misfires mean for the companies involved.
- [By Douglas A. McIntyre]
The Pillsbury Doughboy is the mascot of the Pillsbury Company, which is owned by General Mills (NYSE: GIS) and J.M. Smucker (NYSE: SJM). The Doughboy was created by Pillsburys advertising agency almost 50 years ago. Pikachu are characters owned by The Pokemon Company International and appear in card games, video games, TV shows, movies and comic books. Founded in 1998, the Japanese company has achieved total games sales of almost 280 million. SpongeBob SquarePants was created for Nickelodeon, which is owned by Viacom (NASDAQ: VIA). The show premiered in 1999 and has spawned movies, video games and theme park rides. Ronald McDonald is a c