NEW YORK (TheStreet) -- GameStop Corp. (GME) - Get Report stock is down by 7.5% to $28 in pre-market trading on Monday, after the video game retailer provided lower-than-expected 2016 first quarter guidance.

On Thursday, GameStop projected first quarter earnings to range between 58 cents per share to 63 cents per share, while Wall Street was projecting 71 cents per share.

Additionally, the company reported lower-than-expected revenue during the 2015 fourth quarter. 

"Initial below-Street Q1 guidance we believe reflects ongoing challenges in new software sales," Oppenheimer & Co. said in a note today. "GameStop is a very well-run and capital-disciplined organization. We await management's comments at the company's upcoming Analysts Meeting in mid-April regarding its ongoing push into Tech Brands."

The firm maintained its "perform" rating on the stock.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and unimpressive growth in net income.

You can view the full analysis from the report here: GME

Image placeholder title