GameStop (GME) Stock Plunges on Earnings Miss - TheStreet

NEW YORK (TheStreet) -- GameStop Corp. (GME) - Get Report stock is declining 11.62% to $34.70 on heavy trading volume on Monday morning after the company reported financial results that fell short of estimates for the fiscal 2015 third quarter.

The video game retailer reported earnings of 54 cents per share on $2.02 billion for the quarter ended October 31.

Analysts had estimated earnings of 59 cents per share on $2.15 billion in revenue.

Same store sales declined 1.1%, driven by a 1.7% drop at U.S. stores.

New hardware sales fell 20.4% year-over-year and new software sales declined 9.3%, while pre-owned hardware and software sales increased 0.6%.

"Our third quarter results were at the low end of our guidance range due to lower than expected new software and hardware sales... however, our expectations for the full year have not changed," CEO Paul Raines said in a statement.

GameStop expects new games, such as Assassin's Creed Syndicate, Halo 5: Guardians and Call of Duty: Black Ops III, to boost fourth quarter results.

So far today, 6.72 million shares of GameStop have been traded, compared with its average daily volume of 1.91 million shares.

Separately, 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 a few notable 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 growth in earnings per share, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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

Image placeholder title

GME

data by

YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.