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GameStop Slips as Revenue Miss Outweighs Earnings Beat

Investors focused on a steep sales shortfall despite a surprise profit.

Overview

  • GameStop reported third-quarter revenue of $821 million, well below roughly $987 million expected and down 4.5% year over year.
  • Adjusted earnings came in at $0.24 per share with operating income of $41.3 million as SG&A fell to $221.4 million from $282.0 million a year ago.
  • Core hardware and software sales declined, while collectibles revenue rose to $256.1 million and provided higher-margin support.
  • The company disclosed $8.8 billion in cash and about $519 million in Bitcoin holdings as the stock trades below key moving averages with shares near $21.41 after a roughly 7% five-day slide and about 39% below its year-to-date high.
  • U.S. net sales increased to $617.0 million from $551.7 million, offset by sharp contractions in international markets that weighed on overall performance.