GameStop Whacks Estimate

Updated from 9:09 a.m. EST

GameStop's(GME) fourth-quarter earnings more than doubled from a year ago and easily beat estimates. The video-game retailer issued mixed guidance, forecasting an earnings miss in the first quarter and a beat in the full year.

GameStop earned $85 million, or $1.10 a share, in the January quarter, compared with $34.5 million, or 64 cents a share, a year ago. Adjusted for a merger charge, GameStop earned $1.12 a share, beating the Thomson First Call estimate by 4 cents.

Fourth-quarter sales rose 135% to $1.67 billion; the consensus estimate was $1.66 billion. The company attributed the big jump to its acquisition of Electronics Boutique in October. Same-store sales fell 0.3% in the quarter, compared with a year ago.

For the current quarter, GameStop expects to earn 4 cents to 5 cents a share, including a stock-options expense of 4 cents a share. Analysts were forecasting earnings of 15 cents a share, prior to the options expense. GameStop sees same-store sales falling 7% to 9% in the quarter, reflecting the launch of Sony's PSP in the year-ago period.

For the year ending next February, GameStop expects to earn $1.83 to $1.93 a share, including a stock-options expense of 17 cents a share. Analysts were forecasting earnings of $1.77 a share. GameStop sees same-store sales growth of 6% to 9% in the year, reflecting the launch of PlayStation 3.

The stock was recently up $4.10, or 9.9%, to $43.50.

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