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Sunday, January 24, 2021

GameStop misses Street 3Q forecasts

GRAPEVINE, Texas (AP) — GameStop Corp. (GME) on Monday reported fiscal third-quarter earnings of $55.9 million.

On a per-share basis, the Grapevine-based company said it had net income of 53 cents. Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, were 54 cents per share.

The results missed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 59 cents per share.

The video game retailer posted revenue of $2.02 billion in the period, also falling short of Street forecasts. Seven analysts surveyed by Zacks expected $2.1 billion.

Third quarter net income dropped to $55.9 million, down from $56.4 million a year earlier.

“Our third quarter results were at the low end of our guidance range due to lower than expected new software and hardware sales and delays in Technology Brands store openings; however, our expectations for the full year have not changed,” said Paul Raines, CEO. “Looking ahead to the fourth quarter, a solid slate of new video games, coupled with contributions from our diversified AT&T, Apple and ThinkGeek businesses and our in-store collectibles offerings are expected to drive our fourth quarter results; therefore, we are reiterating our full year earnings per share guidance range of $3.66 to $3.86.”

GameStop expects full-year earnings in the range of $3.66 to $3.86 per share.

GameStop shares have risen 16 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 1.5 percent. The stock has climbed roughly 4 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 http://www.zacks.com/ap/GME. Robert Francis of FWB contributed to this report.

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