When video game retailer GameStop (GME) released its third-quarter earnings on November 20, it was a dismal set of numbers that disappointed speculative analysts as well as investors. Soon after the results were out, the shares of the retailer were down 14.8% in pre-market trading. Let’s take a sneak peek into the numbers posted for the quarter which disappointed the Street. And maybe also try to decipher any other major highlights of the quarter. Here’s the total story.
The segment-wise quarter numbers
GameStop reported earnings of $0.57 a share during the quarter, which missed the $0.61 per share as earnings estimated by analysts. Revenue fell around 0.9% year-over-year to $2.09 billion, below analyst estimates of $2.2 billion. Comparable sales fell 2.3% from a year-ago quarter, and this decline could be attributed to the delay of the Assassin’s Creed: Unity software release. New hardware sales, however, grew 147.4%, while software sales dipped 34.4% from the year-ago quarter.
— Guru Focus