GameStop Earnings: Here’s Why the Stock is Rising Now
GameStop Corp. (NYSE:GME) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10%.
GameStop Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 43.75% to $0.09 in the quarter versus EPS of $0.16 in the year-earlier quarter.
Revenue: Decreased 10.72% to $1.38 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: GameStop Corp. reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.04. It beat the average revenue estimate of $1.36 billion.
Quoting Management: “Through two quarters, the year has played out as expected,” stated Paul Raines, chief executive officer. “During this console transition period, our financial results have been supported by the continued growth of our emerging businesses. This strength helped drive a 130 basis point improvement in gross margin rate for the second quarter.”
Key Stats (on next page)…