GameStop Corp. Downgraded by Bank of America to “Hold” (GME)

Shares of video game retailer GameStop (GME) are down $5.99, or 15%, after the company this morning reported lower-than-expected fiscal Q3 revenue and earnings, and projected earnings per share this quarter lower as well, citing lower video game software and hardware sales, and delays in opening some of its boutique tech stops. Following the bleak quarterly numbers, the company’s shares declined more than 17% during the pre-market trading session. Year-to-date, it’s up about 3 percent.

Including one-time items, earnings per share came in at 53 cents, in comparison to 50 cents in the year-ago period.

GameStop said it expects its fourth quarter same store sales to range from a 1% decline to a 6% increase.

Total global sales for GameStop fell 3.6 percent to $2 billion while profit dropped to $55.9 million. New hardware sales fell 20.4 percent in the third quarter and new software sales fell 9.3 percent. Profits were also down, falling 11.4% to 57-million.

GameStop ended the quarter with roughly 6,900 stores in 14 countries.

However, of all the divisions, digital sales for the company saw the greatest increase with an 8.7 percent rise to $228.6 million. However, forex headwinds primarily led to a 27.1% dip in digital sales to $40 million. Piper Jaffray reiterated an overweight rating and issued a $56.00 target price (up from $52.00) on shares of GameStop Corp.in a report on Tuesday, August 11th. This segment is expected to sustain its growth momentum, backed by its collaboration with AT&T, Inc. (T – Analyst Report) and the Apple Inc. The company has a market cap of $3.97 billion.

Compared to other peers in the Electronics Stores sector, GameStop hasn’t performed in terms of quarterly revenue growth year over year at 0.02 vs. the industry average of 0.30. The rating is an average of the various different ratings given by analysts and brokers to Gamestop Corporation Class A, and then averaged into one rating by a team of analysts at Zacks in Chicago, Illinois. The highest target is $57 and the lowest is $29.76 according to Thomson/First Call. This presents a solid upside to the current price of the equity. (NYSE:GME), 5 rate it “Buy”, 0 “Sell”, while 4 “Hold”. After surveying 10 different analysts, we established an average estimate of $ 0.24 earnings per share (EPS) for NYSE:GME. 59 with revenue estimates of 2.14B.

Bank of America lowered shares of GameStop Corp.