NEW YORK (TheStreet) -- Shares of GameStop (GME - Get Report) are advancing by 3.38% to $29.67 late Wednesday afternoon, ahead of the company's 2016 first quarter results, due out after Thursday's closing bell.

Wall Street is expecting the Grapevine, TX-based video game retailer to report earnings of 61 cents per share on revenue of $1.97 billion.

During the same quarter last year, GameStop earned 68 cents per share on revenue of $2.06 billion.

A concern for the company is the weakness in new software sales as well as the increasing apprehension toward the impact of digital downloads on sales, analysts at Zacks Equity Research said.

Additionally, consumers now have many alternatives to choose from when it comes to software, hardware and game accessories for video game consoles and personal computers, Zacks analysts added.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and attractive valuation levels.

However, the team also finds weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: GME