GameStop Corp. (GME) Stock Takes a Hit on Sales Miss

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GameStop Corp. (NYSE:GME) stock was down on Friday after the company released its earnings report for the second quarter of 2016.

GameStop, GME stockGameStop reported revenue of $1.63 billion for the second quarter of 2016. This is a decrease from the $1.76 billion in revenue that the company reported during the same time last year. It also failed to meet Wall Street’s revenue estimate of $1.72 billion for the quarter.

GameStop reported earnings per share of 27 cents for the second quarter of 2016. This is a drop from the earnings per share of 31 cents that it reported in the second quarter of 2015. However, it did fall in line with what analysts were expecting in the second quarter of the year.

GME stock wasn’t helped by the company’s same-store sales for the second quarter of the year. Comparable same-store sales declined by 10.6% from the second quarter of 2015. GameStop attributed this to the lack of major game releases during the quarter. It also said that news of new consoles being close to release further hampered the quarter’s same-store sales.

GameStop’s guidance for the third quarter of 2016 has its earnings per share falling between 53 cents and 58 cents. It’s expecting earnings per share to range from $3.90 to $4.05 for the year. Wall Street is expecting earnings per share of 53 cents for the third quarter of 2016 and $3.99 for the full year.

GameStop also noted that it expects same-store sales for the third quarter of 2016 to be between -2% to 1% when compared to the third quarter of 2015. The video game retailer is also expecting same store sales for 2016 to be down by 4.5% to 1.5%.

GME stock was down 7% as of Friday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/gamestop-q2-gme-stock/.

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