GameStop Set to Report Q3 Earnings -- Here's What Investors Should Watch

Video game retailer GameStop GME is set to report fiscal third-quarter results after Tuesday's market close, with investors eager to see if the company's turnaround is gaining real traction.

Consensus FQ3 estimates call for EPS of $0.20 and revenue near $987 million

The retailer showed strong signs in FQ2, with net sales climbing more than 20% year-over-year to roughly $972 million. Gross profit hit $283 million, while adjusted operating income turned positive at $64.7 million, reversing last year's loss. Analysts say cost discipline, including tighter SG&A spending, played a key role.

Some market observers point to strong fundamentals, increased demand and productivity. Its debt has risen, presumably on its Bitcoin strategy, but the growth of its top-line and low valuation may provide the stock with some breathing space.

Risks persist, with meme-driven swings and an unclear long-term balance sheet strategy. Historically, GME has beaten EPS in six of its last eight quarters, suggesting potential upside if trends hold.