GameStop Corp. (NYSE:GME) unveiled its fourth-quarter results after the bell Wednesday, topping Wall Street’s expectations.
The video game retailer unveiled a loss of $105.9 million, or $1.04 per share for its fourth quarter of fiscal 2017, well below its year-ago profit of $208.7 million, or $2.04 per share. These figures were affected by asset impairment and other charges equaling $406.5 million, or $3.06 per share, due mostly to the company’s Technology Brands segment.
On an adjusted basis, GameStop posted earnings of $2.02 per share, declining from its year-ago adjusted earnings of $2.38 per share. Analysts surveyed by Thomson Reuters were projecting adjusted earnings of $1.97 per share.
Revenue was strong for the video game company, increasing 15% compared to the year-ago quarter to $3.5 billion, bettering the $3.05 billion from a year ago. Wall Street was forecasting a consensus revenue estimate of $3.27 billion.
GameStop reported same-store sales that grew 12.2%, with 14.2% of this growth taking place in the U.S. and 8.3% in the rest of the world. New hardware sales were up by 44.8%, thanks in part to higher demand for the Nintendo Switch, while new software sales popped 12.4% thanks to a strong lineup of titles at the company’s stores.
For fiscal 2018, the company’s guidance calls for adjusted earnings in the range of $3 to $3.35 per share, while sales are slated to slide 2% to 6%. The high-end of the outlook is in line with Wall Street’s expectations of adjusted earnings of $3.32 per share, while sales are predicted to drop 1.5%.
GME stock gained 1.9% on Wednesday.