GameStop Shares Slammed Amid Concerning Q3, FY 2016 Outlook

GameStop Corp. GME shares tanked more than 10 percent after the company revealed preliminary results for the third quarter that missed expectations.

The company indicated it expects to report EPS of $0.45-$0.49, below the Street expectations of $0.56 for the third quarter.

Similarly, GameStop sees revenue of about $2 billion, also below the Street estimates of $2.08 billion. The company indicated a drop of 6-7 percent in the comparable store sales for the third quarter.

The company revised its EPS outlook to $3.65-$3.80 for the full year with comparable store sales expected to drop between 9.5 and 6.5 percent. Street analysts’ are looking for an EPS of $3.99.

GameStop CEO Paul Raines said, "Our expectation was that the new titles released in October would provide a catalyst for new software sales, but despite gaining market share, the titles underperformed our forecasted sales. While the Technology Brands and Collectibles segments continue to grow rapidly, they will not offset the decline in gaming this quarter.”

At last check, the stock fell 10.48 percent to $21.09 in the pre-market session.