GameStop Corp. (GME) Stock Skyrockets on Strong Q4 Results

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GameStop Corp. (NYSE:GME) had an impressive fall period to close out its fiscal 2017.

GameStop Corp. (GME)For its fourth quarter of the current fiscal year, the video games retailer posted net income of $524 million, or 32 cents per share for the quarter ended Oct. 31, topping the year-ago mark of $302 million ,or 18 cents per share.

On an adjusted basis, GameStop earned 31 cents per share, which came in ahead of the Wall Street consensus estimate of adjusted earnings of 28 cents per share, according to Thomson Reuters.

Revenue was also better than a year ago as the company raked in $7.66 billion in sales, gaining 4.6% year-over-year. However, the figure fell below analysts’ expectations of $7.78 billion in revenue, per Thomson Reuters.

Part of the reason why GameStop had such a successful quarter is thanks to the growing demand of the Nintendo Switch. The company now expects full-year comparable store sales to rise by low- to mid-single digits, ahead of its previous guidance of the high-end of down 5% to flat.

“As we enter the fourth quarter, we are encouraged by the initial customer response to Microsoft’s Xbox One X, and believe that the holiday season results will be driven by new console hardware and collectibles,” interim CEO Dan DeMatteo said on Tuesday.

For the full year, GameStop reaffirmed its full-year profit earnings forecast of $3.10 to $3.40 per share.

GME stock gained 5.3% on Wednesday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/11/gamestop-corp-gme-2/.

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