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Friday, January 15, 2021

GameStop beats expectations but slumps on outlook

GameStop Corp. (GME) on Wednesday reported a fiscal fourth-quarter loss of $105.9 million, after reporting a profit in the same period a year earlier.

But early on Thursday, shares in Gamestop slumped 11 percent the retailer’s disappointing full-year revenue and earnings outlook disappointed Wall Street and which overshadowed fourth-quarter results that beat Wall Street’s expectations. The stock slid $1.55 to $12.60.

On a per-share basis, the Grapevine-based company said it had a loss of $1.04. Earnings, adjusted for one-time gains and costs, came to $2.02 per share.

The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.96 per share.

The video game retailer posted revenue of $3.5 billion in the period, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $3.25 billion.

For the year, the company reported profit of $34.7 million, or 34 cents per share. Revenue was reported as $9.22 billion.

GameStop expects full-year earnings in the range of $3 to $3.50 per share.

GameStop shares have dropped 21 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined roughly 3 percent. In the final minutes of trading on Wednesday, shares hit $14.16, a decrease of 35 percent in the last 12 months.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GME at https://www.zacks.com/ap/GME

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