NEW YORK (TheStreet) -- GameStop (GME) - Get Report stock is plummeting 8.31% to $27.49 in after-hours trading on Thursday after the video game and consumer electronics retailer issued lower-than-expected earnings guidance for the fiscal 2016 second quarter.

The Grapevine, TX-based company expects to report earnings of 23 cents to 30 cents per share for the next quarter, just below earnings estimates of 31 cents per share.

Comparable store sales are expected to decline 4% to 7% for the second quarter, compared with an 8.1% increase for the fiscal 2015 second quarter.

Additionally, GameStop delivered mixed financial results for the fiscal 2016 first quarter after today's market close.

The company posted a profit of 66 cents per share for the quarter ended April 30, beating projections of 61 cents per share.

Revenue declined 4.3% year over year to $1.97 billion, in line with estimates. Comparable store sales were down 6.2% for the latest quarter after rising 8.6% for the same quarter last year.

"We exceeded our first quarter same store sales and EPS guidance in a challenging retail environment due to the outperformance of our non-physical gaming businesses (technology brands, collectibles, digital)," CEO Paul Raines said in a statement.

Separately, GameStop has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's growth in earnings per share, revenue growth and attractive valuation levels, which offsets generally disappointing stock performance and poor profit margins.

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.

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