Everything you need to know before earnings are announced

Video game retailer GameStop (NYSE:GME) will report earnings tomorrow after the market closes. Here's what to expect.

GameStop missed analysts' revenue expectations by 11.4% in its latest quarter, reporting revenue of $881.8 million, down 28.7% year over year. It was a weak quarter for the company, which missed analysts' earnings estimates.

Is GameStop a buy or sell on earnings? Read our full analysis for free here.

This quarter, analysts expect GameStop's revenue to decline 23% year over year to $895.7 million, reversing the 2.4% increase in the year-ago quarter. Adjusted loss is expected to be -$0.09 per share.

The majority of analysts covering the company have confirmed their estimates over the past 30 days and expect the company to stay on course and remain in profit as well. GameStop has missed Wall Street's revenue estimates six times in the past two years.

Looking at GameStop's competitors in the specialty retail space, some have already reported their second-quarter results, giving us a hint of what to expect. Best Buy's sales fell 3.1% year over year, meeting analyst expectations. Dick's reported a 7.8% increase in sales, beating estimates by 1.1%. Best Buy was up 14.3% after the results were released, while Dick's was down 7.5%.

Read our full analysis of Best Buy's results here and Dick's results here.

Investors in the specialty retail segment have a good opportunity on earnings as share prices have remained flat over the past month. GameStop is up 9.2% over the same period and enters earnings with an average analyst price target of $11 (compared to the current share price of $23.89).

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