11:02 AM EDT, 03/25/2024 (MT Newswires) -- GameStop's ( GME ) continued cost discipline and mix shift towards higher-margin software are likely to support the company's profitability in its fiscal Q4, Wedbush Securities said Monday.

The company is scheduled to report fiscal Q4 results on Tuesday. Wedbush is projecting earnings at $0.25 per share on net sales of $2 billion. The market consensus is for $0.30 and $2.05 billion, respectively, according to the brokerage.

"GameStop ( GME ) will benefit from industry trends during the quarter, but continued losses in market share and a mix shift towards digital likely led to underperformance in the quarter," Wedbush analysts Michael Pachter and Nick McKay said in a note.

Wedbush maintained its underperform rating and $6 price target on the GameStop ( GME ) stock.

The company's shares were up more than 7% in recent trading.

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