GameStop (NYSE:GME) earnings for fiscal first quarter of 2020 have GME stock heading lower after-hours Tuesday. That’s thanks to its adjusted losses per share of $1.61 on revenue of $1.02 billion. Neither of these was able to reach Wall Street’s estimates of a loss of $1.27 per share or revenue of $1.07 billion.
Let’s see what else went wrong for GameStop during its most recent earnings report.
- Adjusted per-share losses are an enormous decline from its adjusted earnings per share (EPS) of 7 cents from the same time last year.
- Revenue for the quarter comes in 34.2% lower than the $1.55 billion reported in fiscal Q1 2019.
- Operating loss of $108 million is a negative switch year-over-year from an operating income of $17.5 million.
- The GameStop earnings also have it reporting a net loss of $165.7 million.
- That’s a significant drop compared to its net income of $6.8 million from the same period of the year prior.
George Sherman, CEO of GameStop, said this about the current earnings report:
“…Our e-commerce sales grew 519% in the first quarter and over 1,000% during the six weeks that our store base temporarily closed to customer access. We believe this reflects the loyalty of the GameStop customer and the confidence they place in us as their preferred place to shop.”
GameStop isn’t providing an outlook in its earnings report. The unpredictable nature of markets due to the novel coronavirus is behind this decision. Many other companies are also withholding guidance due to the pandemic.
GME stock was down 2.6% after markets closed on Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.