GameStop Earnings: GME Stock Sinks on Q4 Revenue Miss

GameStop (NYSE:GME) announced its fourth-quarter results late on Tuesday, bringing in mixed results that included in-line earnings, a revenue miss and a failure to unveil a full-year outlook.

GameStop Earnings
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The Grapevine, Texas-based video game retailer said that for its last three months of its fiscal 2018 it brought in net losses of $187.7 million, which came in at roughly $1.84 per share. This was wider than its losses of $105.9 million, or $1.04 per share from the year-ago quarter.

GameStop added that, on an adjusted basis when considering goodwill impairment, store closure costs and tax effects, earnings tallied up to $1.60 per share, below the $2.02 per share from its fourth quarter of 2017. Analysts were calling for the business to bring in adjusted earnings of $1.60 per share, according to data compiled by FactSet.

The company also brought in sales of $3.06 billion for the period, a 7.8% drop when compared to the $3.32 billion it amassed during the year-ago quarter. Wall Street was projecting for GameStop to rake in revenue of $3.28 billion, according to a survey of analysts conducted by FactSet.

For its first quarter of 2019, analysts see earnings at 17 cents per share and revenue reaching $1.69 billion, while GameStop predicts sales to slide 5% to 10% year-over-year to go along with a loss of up to 5 cents per share for the period. The company did not reveal a guidance for its fiscal 2019.

GME stock fell 2.6% during regular trading Tuesday, then plummeted 8% after hours following its earnings results.

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