NEW YORK (TheStreet) -- Shares of GameStop Corp. (GME) - Get Report are higher by 4.96% to 42.95 in after-hours trading on Thursday, after the video game and related electronics retailer posted better than expected earnings results for the 2015 first quarter.

The company said it earned 68 cents per diluted share for the quarter ended May 2015. This figure exceeded the 59 cents per share analysts had forecast.

Revenue for the latest quarter grew by 3.2% year over year to $2.06 billion, while analysts were anticipating revenue of $2.01 billion.

"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," company CEO Paul Raines said in a statement.

"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," Raines continued.

Insight from TheStreet Research Team:

TheStreet's Chris Laudani commented on GameStop earlier in today in a post on Here is what Laudani had to say about it:

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' originally published 05/28/2015 on

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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 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."

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

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