GameStop stock jumps after results top estimates, helped by international gains

Shares of GameStop Corp. rose in extended trading Wednesday after the videogame retailer and original meme stock reported second-quarter results that beat expectations, lifted by international sales gains and what the company described as “a significant software release.”

The company — which over the past few months has made some big leadership changes — reported a net loss of $2.8 million, or 1 cent a share, compared with $108.7 million, or 36 cents a share, in the same quarter last year. Revenue crept higher to $1.16 billion, compared with $1.14 billion in the prior-year quarter.


adjusted net loss per share was 3 cents. The company ended the quarter with cash and equivalents of $1.195 billion, compared with around $1.3 billion in the prior quarter.

Analysts polled by FactSet expected a 14-cent adjusted per-share loss, on revenue of $1.14 billion.

Shares rose 3.6% after hours. The company, as with its previous round of earnings, said it would not be holding a conference call.

In a separate filing, GameStop reported gains in sales internationally, led by Europe, while those in the U.S. fell 4.2%. The sales gains overall during the quarter, the company said, were “primarily attributable to a significant software release,” along with increased new-hardware sales, or things like consoles, internationally. However, sales of collectibles — items like clothes, toys and cards — fell.

GameStop did not immediately respond to a request for information about what the software release was. But analysts, ahead of the chain’s earnings, noted the recent debuts of popular games like “Diablo IV” and “The Legend of Zelda: Tears of the Kingdom.”

GameStop reported its results in the wake of the firing of its chief executive and the election of activist investor Ryan Cohen to executive chair in June, followed by the the resignation of its chief financial officer. Cohen over the past few years has amassed greater influence over the company.

Wall Street, however, has had broader concerns about a shift to mobile and digital gaming, and the threat posed to physical videogame retailers.

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