GameStop earnings (NYSE:GME) were better than what analysts were calling for in their consensus estimate, but the company’s stock declined as its fiscal 2018 earnings outlook is well below Wall Street’s guidance.
The video game retailer said that for its third quarter of the current fiscal year, it amassed net losses of $488.6 million, which amounted to roughly $4.78 per share. The figure was considerably weaker than the company’s net income from the year-ago quarter of $59.4 million, or 59 cents per share.
On an adjusted basis, GameStop said that its earnings came in at 67 cents per share, adjusting for items such as goodwill and asset impairments over the company’s sustained falling stock. In the year-ago quarter, the retailer brought in adjusted earnings of 54 cents per share.
Analysts were calling for the company to bring in adjusted earnings of 57 cents per share, according to data compiled by FactSet. GameStop’s third-quarter revenue tallied up to $2.08 billion, ahead of the $1.99 billion it raked in during the year-ago quarter, while also crushing the $2.03 billion that analysts were calling for, according to FactSet.
The company is calling for its adjusted earnings of its fiscal 2018 to be in the range of $2.55 to $2.75 per share now. Analysts see this figure as being around $3.04 per share.
GME stock was sliding about 2.5% during regular trading hours on Thursday as the company readied itself to release its latest quarterly earnings figures. A weak fiscal 2018 guidance sent the company’s shares down more than 12.5% after the bell.
