GameStop reports first quarter results; names new interim CEO

GameStop

GameStop Corp. (GME) on Thursday reported fiscal first-quarter net income of $28.2 million.

The Grapevine-based company said it had profit of 28 cents per share. Earnings, adjusted for severance costs, came to 38 cents per share.

The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 35 cents per share.

The video game retailer posted revenue of $1.93 billion in the period, missing Street forecasts. Four analysts surveyed by Zacks expected $1.96 billion.

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GameStop expects full-year earnings in the range of $3 to $3.35 per share.

“Our team remains focused on improving the fundamentals of our core businesses in order to drive profitability and we were pleased to deliver first quarter sales and earnings in line with our expectations,” said Dan DeMatteo, executive chairman. “We continue to expect annual sales and earnings results for fiscal 2018 to be in line with the guidance we provided last quarter.”

GameStop also announced that Shane Kim, current member of the company’s Board of Directors and former Microsoft executive, will serve as interim CEO until a permanent one is named, and that Rob Lloyd has been promoted to chief operating officer and chief financial officer. Dan DeMatteo will continue serving as GameStop’s executive chairman of the Board.

GameStop shares have dropped 26 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 1 percent. In the final minutes of trading on Thursday, shares hit $13.22, a decrease of 40 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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