Before the bell, shares had taken off 4.9% to $37.
Over the three months to Feb. 1, GameStop recorded net income of $1.90 a share, 2 cents short of analysts' estimates compiled by Thomson Reuters.
Revenue jumped 3.4% from the year-ago quarter, while comparable-store sales soared 7.8%, driven by console sales of the recently-launched Microsoft (MSFT) Xbox One and Sony (SNE) PlayStation 4. However, $3.68 billion in total sales fell short of a forecast of $3.78 billion.
"The launch of new consoles in 2013 marked the return of innovation to the video game category and GameStop's market share increased to an all-time high," CEO Paul Raines said in a statement.
Over fiscal 2014, management expects sales growth between 8% and 14% and provided earnings guidance of $3.40 to $3.70 a share. Analysts forecast earnings of $3.76 a share.
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 revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these 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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