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Stock impact report

3 Investor Fears Gamestop's New CEO Will Have to Address [The Motley Fool]

GameStop Corporation (GME) 
Last gamestop corporation earnings: 3/26 04:06 pm Check Earnings Report
Company Research Source: The Motley Fool
The quarter was strong, but 2018 guidance painted a troubling picture -- can the new CEO turn things around? In March, Gamestop ( NYSE:GME )  reported its fourth-quarter and full-year 2017 earnings.  Fourth quarter revenue came in at $3.5 billion, beating analyst expectations by $230 million, and adjusted earnings per share came in at $2.02, topping the consensus by $0.05. However, guidance for continued sales declines of 5% to flat in 2018, along with adjusted net income between $3.00 and $3.35 per share (which would mark another decline from the prior year despite benefits from tax reform) scared investors. To make matters worse, an analyst downgrade the following day sent shares sinking by double digits. While the situation is challenging, Gamestop trades at only four times forward earnings  and offers a dividend yield over 11%, which means the stock is priced for near-extinction. Meanwhile, new CEO Mike Mauler just took the helm in February. Here are the big Show less Read more
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