Analysts expect GameStop to report consensus revenue of $756.85 million and EPS of $0.27 for the second quarter, while the stock currently trades at $19.16, significantly above the average analyst price target of $13.50.
Investors are primarily focused on the performance of GameStop's massive equity stake in eBay, which is expected to drive a substantial non-operating profit jump for the period.
Preliminary results released on August 31 already indicated a surge in net income to approximately $300 million, largely due to a $238 million mark-to-market gain on its 43.4 million eBay shares. This pivot toward an investment-focused strategy occurs as core retail sales continue to contract, with revenues expected to decline roughly 22% year-over-year due to store closures and a lack of major hardware catalysts.