GameStop shares fall on Q3 earnings: earnings per share are correct, revenues miss despite collectibles growth – GameStop (NYSE:GME)

GameStop Corp (NYSE:GME) reported third-quarter financial results after the market close on Tuesday. Here are the key details from the video game retailer’s report.

Q3 Highlights: GameStop posted third-quarter revenue of $821 million, missing analyst estimates of $987.28 million. The company reported third-quarter adjusted earnings of 24 cents per share, beating analyst expectations of 20 cents per share. Benzinga Pro.

Third-quarter sales declined approximately 4.5% year-over-year. Below is an overview of revenues per category:

• Hardware and accessories: $367.4 million, down from $417.4 million year over year
• Software: $197.5 million, down from $271.8 million year over year
• Collectibles: $256.1 million, compared to $171.1 million annually

GameStop generated operating income of $41.3 million in the quarter, compared to an operating loss of $33.4 million in the comparable quarter last year.

The retailer said it ended the period with approximately $8.8 billion in cash, cash equivalents and marketable securities. GameStop had that too Bitcoin (CRYPTO: BTC) holdings that were valued at $519.4 million at the end of the quarter after the cryptocurrency was added to the balance sheet earlier this year.

GameStop has not scheduled an earnings call for the third quarter. The company has not held a conference call to discuss quarterly financial results since early 2023.

GME Price Action: GameStop stock fell 5.67% after hours to trade at $21.80 at the time of publication on Tuesday, according to Benzinga Pro.

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Image created using artificial intelligence via Gemini.