A weak yen is expected to boost sales in the company’s gaming segment, but its latest outlook warned of lower operating results for the fiscal year ending Mar. 31.
The other contender is Microsoft Corporation (NASDAQ:MSFT)‘s Xbox One, set for release around the end of November. As mentioned above, it will be about $100 more expensive than the PS 4, while offering specs similar to the PS 4. Microsoft Corporation (NASDAQ:MSFT) initially caught a lot of heat for certain decisions surrounding the resale of used games, but has since reverted to a model more similar to Sony Corporation (ADR) (NYSE:SNE)’s. While currently still holding the No. 1 spot in terms of console sales, the PS 4 seems the console to beat this holiday season.
GameStop Corp. (NYSE:GME) recently increased its full-year earnings forecast in anticipation of these releases, on the back of a healthy quarterly beat. Additionally, the company is expected to benefit from high-profile game releases including ‘Battlefield 4’ and ‘Grand Theft Auto V.’ With pre-orders for the PS 4 streaming in, the company is now expecting full-year EPS of $3.00-$3.20 versus a previous $2.90-$3.15. In a cautious consumer-spending environment, the strong report and raised outlook were received as excellent news.
The bottom line
All is not lost for GameStop Corp. (NYSE:GME), as became clear in its most recent earnings report. New console offerings from Microsoft Corporation (NASDAQ:MSFT) and Sony Corporation (ADR) (NYSE:SNE) are furthermore expected to boost sales, especially in the all-important fourth quarter, and the company recently upped its full-year guidance. As such, the company looks like a solid pick going into the holiday season.
The article Is Gamestop a Buy Ahead of the Holiday Season? originally appeared on Fool.com is written by Daniel James.
Daniel James has no position in any stocks mentioned. The Motley Fool owns shares of GameStop and Microsoft.
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