GameStop's Profits Rise, But Misses Revenue Estimates (GME)

GameStop Corp. GME announced on Thursday morning that it beat consensus Wall Street earnings estimates, while missing revenue expectations. GameStop Corp. reported that its 3rd quarter net earnings rose 4.8% to $54.7 million, or 36 cents per share, up from $52.2 million, or 31 cents per share, a year earlier. Excluding special items, the company's earnings came in at 38 cents per share. The company reported that its total sales rose 3.5% to $1.9 billion, up from $1.83 billion a year earlier. According to a survey of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 37 cents per share, on revenue of $1.95 billion. Executive chairman Dan DeMatteo said, “Several technology and consumer initiatives have entered the market, each of them strengthening our core business and establishing GameStop as the retail leader in providing consumers with exciting ways to experience video gaming. The PowerUp Rewards™ Loyalty Program, Kongregate.com, in-store digital content sales and a re-tooled gamestop.com were all implemented to expand market share and increase our share of wallet. Lastly, the on-going execution of share buybacks and debt retirement reinforces our commitment to exercise disciplined capital allocation practices to maximize shareholder returns.” GameStop Corp. (GME) closed the previous trading day at $21 per share. Analysts covering the company's stock give it a consensus price target of $26.54 per share. Read more from Benzinga's Company news.