NEW YORK (TheStreet) -- GameStop Corp. (GME) - Get Report stock is retreating by 5.35% to $28.65 in after-hours trading on Thursday, after the Grapevine, TX-based video game and other electronics retailer issued lower-than-expected financial guidance for the fiscal 2016 first quarter.
First quarter earnings guidance was set at 58 cents to 63 cents per share, while Wall Street is anticipating earnings of 71 cents per share.
Revenue is expected to decline year-over-year by 4% to 7% for the first quarter, driven by an estimated 7% to 9% drop in comparable store sales. Analysts were expecting revenue to increase by 1.3% to $2.09 billion for the quarter.
Additionally, GameStop delivered mixed financial results for the fiscal 2015 fourth quarter after today's market close.
The company reported earnings of $2.40 per share for the quarter ended January 30, beating estimates of $2.25 per share. Revenue increased 1.4% to $3.53 billion for the latest quarter, but missed estimates of $3.57 billion.
Comparable store sales increased by 3.1% for the quarter with U.S. comparable store sales up by 3% and international comparable sales rising by 3.3%. Sales of non-physical gaming products, including digital, mobile and consumer electronics, offset weaker new software sales.
Separately, GameStop has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's strengths, such as growth in earnings per share, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures, and its weaknesses, including weak operating cash flow, disappointing stock performance and unimpressive growth in net income.
You can view the full analysis from the report here: GME
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 article's author.