GameStop Corp. (NYSE:GME) stock took a hard hit today following the release of its holiday sales update for 2017.
The big blow to GME stock comes in an update to the company’s guidance for the full year of 2017. GameStop Corp. says that it now expects earnings per share for the year to be near the middle of its previous 2017 guidance, which ranged from $3.10 to $3.40.
This update means that GameStop Corp. is expecting earnings per share for the year to come in around $3.25. This would be below its earnings per share of $3.77 from 2016. It also wouldn’t reach Wall Street’s earnings per share estimate of $3.32 for the year.
Looking at GameStop Corp.’s earnings per share for the last few years, we can see that the company is continuing to deal with an earnings decline. While its earnings per share from 2016 was $.377, this was still a drop from its 2015 earnings per share of $3.90.
GameStop Corp. points out that it is also expecting to face between $350 million and $400 million in non-cash impairment charges in connection to its Technology Brands business. The company says this is due to a longer upgrade cycle for mobile devices and change made by AT&T Inc. (NYSE:T) to its compensation structure.
GameStop Corp. says that it currently expects to release its earnings report for the full year of 2017 in late March. It also notes that it will be providing guidance for 2018 in this earnings report.
GME stock was down 11% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.