Pachter expects that the company will report results that are “slightly higher” than GameStop’s guidance of diluted earnings per share of $0.36-$0.38. He also expects that company will maintain the fiscal year 2008 guidance it outlined in April. At that time, the retailer expected diluted earnings per share of $2.45-$2.50, representing 36 to 39 percent earnings growth.
Pachter also notes that GameStop’s share prices have fall significantly since April, saying that “investors appear concerned that decelerating growth and a worsening economic environment indicate slowing earnings growth.” Pachter disagrees with this stance, maintaining a BUY rating for the stock—though he is lowering the price target for the stock to $34.