GameStop Stock Is Tumbling Wednesday: What's Going On?

GameStop Corp GME shares are trading lower Wednesday after the company reported worse-than-expected financial results.

What Happened: GameStop reported fourth-quarter revenue of $1.794 billion, which missed the consensus estimate of $2.05 billion, according to Benzinga Pro. The video game retailer reported quarterly adjusted earnings of 22 cents per share, which missed analyst estimates for earnings of 29 cents per share.

GameStop said it ended the quarter with $1.199 billion in cash, cash equivalents and marketable securities. Long-term debt remained limited to a low-interest unsecured term loan associated with the COVID-19 pandemic.

GameStop did not hold a conference call following the earnings release. The company has now refrained from holding a call with analysts and investors for four consecutive quarters.

In a regulatory filing, GameStop said its board promoted interim Principal Financial Officer Daniel Moore to Principal Financial Officer. The company also noted that it recently undertook cost reduction measures and other initiatives to improve the efficiency of its operations, including initiatives to reduce headcount.

Following the print, Wedbush analyst Michael Pachter maintained GameStop with an Underperform rating and lowered the price target from $6 to $5.60.

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GME Price Action: GameStop shares were down 15.7% at $13.08 at the time of publication, according to Benzinga Pro.

Photo: JJBers from Flickr.