Categories AlphaGraphs, Earnings, Retail

GameStop stock tanks after missing Q1 sales estimates

Shares of GameStop Corp. (NYSE: GME) plunged about 8% in the after-hours of trading today after it missed first quarter sales estimates. The video game retailer reported adjusted earnings of 7 cents per share, while sales declined 13% year-over-year to $1.5 billion. Analysts had expected the company to post a loss of 3 cents per share on revenue of $1.64 billion.

The Grapevine, Texas-based firm’s GAAP net income was $6.8 million or $0.07 per diluted share compared to net income of $28.2 million or $0.28 per diluted share in the prior-year quarter, which included the Spring Mobile business. Comparable store sales declined 10.3% for the quarter ended May 4, 2019.

GameStop (GME) Q1 2019 earnings infograph

Earlier, the gaming firm has guided first quarter 2019 earnings in the range of breakeven to a loss of $0.05 per share. For fiscal-year 2019, GameStop expects both sales and comparable sales to decline in the range of 5-10%.

“Since joining GameStop in April, I have been undertaking a thorough review of the business and working closely with the team to improve our operational and financial performance, address the challenges that have impacted our results, and execute both deliberately and with urgency. We believe we will transform the business and shape the strategy for the GameStop of the future,” said the new CEO George Sherman.

Also read: Activision Blizzard Q1 profit drops 11% but beats estimates

On June 3, 2019, GameStop’s board of directors decided to eliminate the quarterly dividend, effective immediately, to strengthen the company’s balance sheet and provide increased financial flexibility and optionality. By not paying the dividend, the company expects to preserve about $157 million in cash annually, based on the dividend amount paid in 2018.

GameStop shares, which plunged to a 52-week low ($7.32) last Friday, have dropped 38% since the beginning of this year and 45% in the past 52 weeks.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top