3 Stocks to Watch on Friday: GameStop Corp. (GME), Autodesk, Inc. (ADSK) and VMware, Inc. (VMW)

GME - 3 Stocks to Watch on Friday: GameStop Corp. (GME), Autodesk, Inc. (ADSK) and VMware, Inc. (VMW)

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U.S. equities dipped on a light-volume Thursday as Amazon.com, Inc. (NASDAQ:AMZN) sparked a 1.3% selloff in consumer staples stocks. The S&P 500 Index fell 0.2%, the Dow Jones Industrial Average declined 0.1% and the Nasdaq Composite fell 0.1%.

3 Stocks to Watch on Friday: GameStop Corp. (GME), Autodesk, Inc. (ADSK) and VMware, Inc. (VMW)While Friday’s Federal Reserve symposium in Jackson Hole, Wyoming, and the impending landfall of Hurricane Harvey are taking up the macroeconomic spotlight, earnings are dominating single-company headlines. Today, investors should have their eyes fixed on Autodesk, Inc. (NASDAQ:ADSK), GameStop Corp. (NYSE:GME) and VMware, Inc. (NYSE:VMW).

Here’s why.

GameStop Corp. (GME)

GME stock is reeling this morning following a disappointing second-quarter earnings report.

Overall, total revenues improved by 3.4% to $1.69 billion, topping Wall Street’s consensus estimate for $1.64 billion. That was weighed down by a 7.5% decline in its pre-owned video games business — its worst drop in more than a year — to $502 million. New video games slumped 3.4%.

The company’s Technology Brands unit — which includes AT&T Inc. (NYSE:T) and Apple Inc. (NASDAQ:AAPL) authorized retail stores — grew sales by 7% to $188.3 million. However, that was well shy of analyst expectations for $207.6 million.

Worse, net income came in 18.5% lower year-over-year to $22.2 million (22 cents per share). On an adjusted basis, profits of 15 cents per share were a penny shy of analyst expectations.

New consoles have helped GameStop’s sales from declining further; the Nintendo Switch’s release has been of paramount importance to the recent quarter. However, increased downloading of games has hurt the retailer.

GME stock is off more than 7% in Friday’s premarket trade.

Autodesk, Inc. (ADSK)

Autodesk shares were surging ahead of Friday’s bell after the company posted its most recent earnings results.

The software company unveiled a loss of $144 million, or 66 cents per share. On an adjusted basis, the company lost 11 cents per share, however, which was narrower than analysts’ expectations of a 16-cent loss.

Autodesk’s second-quarter revenue reached $501.8 million, dropping 9% year-over-year. Still, that was enough to beat Wall Street’s consensus estimate for sales of $494.9 million.

“During the second quarter we started offering a simple path for maintenance customers to move to subscription,” Autodesk CEO Andrew Anagnost said. “While the program didn’t begin until midway through the quarter, it is off to a great start with nearly one-in-four renewal opportunities moving to subscription.”

For its third quarter, the company sees revenue in a range of $505 million and $515 million, which is lower than analysts’ projections of at least $516 million. The company is projecting a loss in a range of 12 to 16 cents per share, which is slightly worse at the midpoint than expectations for 13 cents per share.

For fiscal 2018, Autodesk predicts revenue of $2.03 billion to $2.05 billion, in line with Wall Street’s consensus estimate of $2.04 billion. The loss is slated to come in between 54 and 61 cents, while analysts were looking for 56 cents of red ink.

ADSK stock is headed higher by nearly 4% this morning.

VMWare, Inc. (VMW)

The longs are starting to digest VMW’s second-quarter earnings beat.

In its second quarter of fiscal 2017, the computing and platform visualization services provider earned $334 million, or 81 cents per share. The latter figure marked a 30.65% improvement compared to the year-ago period.

VMWare posted adjusted earnings of $1.19 per share, which was stronger than analysts’ projections of $1.15 per share.

The company’s revenue came in at $1.9 billion, topping the year-ago figure by 12%. The figure also came in just ahead of Wall Street’s estimate of $1.88 billion, according to FactSet.

For the current quarter, analysts forecast that VMWare will earn $1.28 per share on an adjusted basis. They also see revenue at $1.93 billion.

VMW stock dipped slightly after Thursday’s close, but is swinging to a roughly 2% climb in Friday’s early trade.

Article printed from InvestorPlace Media, https://investorplace.com/2017/08/3-stocks-to-watch-on-friday-gamestop-corp-gme-autodesk-inc-adsk-and-vmware-inc-vmw/.

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