GameStop Earnings: GME Stock Sinks as Q1 Sales Fall 13%, Miss Guidance

Shares are declining more than 10% after hours

GameStop (NYSE:GME) posted its quarterly earnings results late today, bringing in a profit that surpassed the loss that Wall Street called for, yet sales disappointed as they fell when compared to the year-ago quarter, while also missing what analysts called for.

GameStop EarningsThe Grapevine, Texas-based video game and consumer electronics retailer said that for its first quarter of its fiscal 2019, it posted net income of $6.8 million, or 7 cents per share. This figure was less than a quarter the $28.2 million, or 28 cents per share, the business raked in during the same period in 2018.

GameStop added that for the three-month period to kick off the fiscal year, its earnings reached 7 cents per share on an adjusted basis when considering items such as income from discontinued operations. Wall Street called for the company to bring in an adjusted loss of 3 cents per share on its consensus estimate, according to data from analysts polled by FactSet.

The business added that its revenue for the period came in at $1.55 billion, declining 13.4% when compared to its sales of $1.79 billion from the same period a year ago. Analysts saw GameStop bringing in sales of $1.64 billion, according to the FactSet survey.

For its second quarter, analysts see a loss of 21 cents per share on sales of $1.34 billion. GameStop sees its full-year 2019 sales falling between 5% and 10%.

GME stock is plummeting roughly 10.1% after hours following the revenue miss. Shares had been gaining about 4.7% during regular trading hours in anticipation of the company’s quarterly earnings results today.

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