GameStop Corp. Earnings: Rise in Profit, Shareholders Not Impressed
S&P 500 (NYSE:SPY) component GameStop Corp. (NYSE:GME) reported its results for the first quarter. GameStop Corp. operates as a retailer of video game products and PC entertainment software. It sells video game hardware, software and accessories, and PC entertainment software.
GameStop Corp Earnings Cheat Sheet for the First Quarter
Results: Net income for the electronics store rose to $80.4 million (56 cents/share) vs. $75.2 million (48 cents/share) in the same quarter a year earlier. A rise of 7% from the year earlier quarter.
Revenue: Rose 9.5% to $2.28 billion YoY.
Actual vs. Wall St. Expectations: GME beat the mean analyst estimate of 54 cents/share. Estimates ranged from 53 cents per share to 56 cents per share.
Quoting Management: Paul Raines, chief executive officer, stated, “GameStop continues to execute its strategic plan. Our strong comparable store sales reflect record share gains, pre-owned sales acceleration, robust digital sales growth and extraordinary consumer acceptance of our PowerUp Rewards™ loyalty program. Our unique, multichannel business model makes the GameStop network the premier gaming provider.” Rob Lloyd, chief financial officer, said, “We delivered record financial results while continuing to make investments in our digital channel, including the acquisitions of Spawn Labs and Impulse, Inc. The strength of our balance sheet and consistent cash flow allows us to invest in future growth channels while returning value to shareholders.”
The company’s cost of sales rose 9.9% from a year earlier. Last quarter, cost of sales was 72.8% of revenue versus 72.6% a year earlier.
Closely Related Companies: Activision Blizzard, Inc (NASDAQ:ATVI), Electronic Arts Inc. (NASDAQ:ERTS), Microsoft Corporation (NASDAQ:MSFT), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), THQ Inc. (NASDAQ:THQI), Sony (NYSE:SNE), and Nintendo Co., Ltd (NTDOY).
Stock Performance: Shares of GME are down 5.5% from the previous close of $26.68.