GameStop (NYSE:GME) earnings for the video game retailer’s third quarter of 2019 have GME stock taking a beating on Tuesday. This is due to it posting adjusted losses per share of -49 cents on revenue of $1.44 billion. These are both a far cry from Wall Street’s estimates of 11 cents per share and $1.62 billion.
Let’s take a look at the rest of the bad news in the GameStop earnings report.
- GameStop sees its EPS of 49 cents in Q3 2018 turn to a loss in the most recent quarter.
- Revenue is down 25.77% from the $1.94 billion reported during the same time last year.
- Operating loss of -$45.60 million is 91.19% better YoY compared to -$517.90 million.
- The GameStop earnings report also has net loss coming in at -$83.40 million.
- This is an 82.93% narrower net loss than the -$488.60 million from the same period of the year prior.
George Sherman, CEO of GameStop, has this to say about the GME stock earnings.
“Our third quarter results continue to reflect the prevailing industry trends, most notably the unprecedented decline in new hardware sales seen across the market as the current generation of gaming consoles reach the end of their lifecycle and consumers delay their spending in anticipation of new hardware releases. With console makers set to introduce new and innovative gaming consoles late next year, we anticipate this trend to continue until the fourth quarter of 2020.”
GME is also expecting an adjusted EPS of 10 cents to 20 cents in 2019. This will have it missing Wall Street’s estimate of $1.21 for the period.
GME stock was down 19.35% after-hours Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
