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NEW YORK (TheStreet) -- Gamestop (GME) - Get Free Report shares are up by 7.48% to $43.98 in early market trading on Friday, after the video game retailer reported its first quarter earnings results following the closing bell yesterday.

The Grapevine, TX-based company reported that net income rose 9% to $73.8 as revenue from new games increased 9% year over year. On a per share basis the company reported earnings of 68 cents on net revenue that increased by 3% to $2.06 billion.

Analysts on average were expecting the company to report earnings of 58 cents per share on revenue of $2.04 billion.

The company typically experiences a slowdown in the second quarter and issued current quarter earnings guidance between 21 cents per share and 25 cents per share. Analysts are expecting the company to earn 21 cents per share in the period.

"Our first quarter results exceeded expectations, displaying our market leadership and our ability to drive and leverage our core video game business and expand our diversified businesses to deliver healthy profits and solid top-line growth. This performance confirms that our effort to transform GameStop into a family of specialty brands is the right strategy to drive durable revenues and shareholder value," said CEO Paul Raines.

Insight from TheStreet's Research Team:

Real Money Pro's Chris Laudani had this to say about GameStop's prospects going forward:

GameStop (GME) is up almost 17% year to date and the company reports results tonight after the close. I think the stock could go higher, since 2015's second half is packed with a strong slate of new releases.

GameStop reported disappointing earnings back in March. The company missed the consensus estimate by $0.25 a share and the stock took a beating. Management gave overly conservative guidance, which forced many investors to the sidelines. The shares have flopped around like a dead fish ever since, as nobody knows what to do with the stock...

Regardless of where the quarter comes in, I think investors will begin to buy the stock ahead of the holidays because 2015's second half has a strong slate of new releases. For example, GameStop will release Madden 2016 in August and FIFA Soccer in September. While sports will be strong over the summer, October will see the release of Halo 5: Guardians, Tom Clancy's Rainbow Six Siege and Assassin's Creed Syndicate.

The holidays should also be a real battle, as Rise of the Tomb Raiders, Call of Duty Black Ops III and Star Wars Battlefront all come out in November and will fight it out for supremacy.

Right now, the consensus believes revenue will increase just 2% in fiscal 2016. I think that's too low, and that GameStop could bring in better than 5% growth on the topline. That means the company would end the year with sales closer to $9.7 billion instead of $9.2 billion.

-Chris Laudani- 'GameStop Looks Like a Strong Play', Real Money Pro 5/28/2015.

TheStreet Ratings team rates GAMESTOP CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GAMESTOP CORP (GME) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, increase in net income, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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