GameStop Releases Q1 Results Ahead Of 'Roaring Kitty' Event, Files Prospectus To Raise Capital Via Equity Offering
Portfolio Pulse from Anusuya Lahiri
GameStop released its Q1 2024 results, reporting a decline in net sales and a larger-than-expected EPS loss. The company also filed a prospectus to raise capital via an equity offering. Despite a recent boost from 'Roaring Kitty,' GME shares traded lower premarket.
June 07, 2024 | 11:16 am
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NEGATIVE IMPACT
GameStop reported Q1 2024 results with net sales of $881.80 million, missing estimates, and an EPS loss of $(0.12). The company also filed a prospectus to raise capital via an equity offering. Despite recent hype from 'Roaring Kitty,' GME shares traded lower premarket.
The decline in net sales and larger-than-expected EPS loss are negative indicators. The equity offering could dilute existing shares, adding further downward pressure. Despite the 'Roaring Kitty' hype, the premarket trading suggests a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
iShares Core S&P Mid-Cap ETF (IJH) includes GameStop among its holdings. The negative Q1 results and equity offering news from GameStop could have a minor negative impact on IJH.
GameStop is part of IJH's holdings. The negative news from GameStop could slightly impact IJH's performance, but the effect is likely to be minor given the ETF's diversified portfolio.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 30
NEGATIVE IMPACT
SPDR MidCap Trust Series I (MDY) includes GameStop among its holdings. The negative Q1 results and equity offering news from GameStop could have a minor negative impact on MDY.
GameStop is part of MDY's holdings. The negative news from GameStop could slightly impact MDY's performance, but the effect is likely to be minor given the ETF's diversified portfolio.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 30