Why GameStop (GME) Stock Is Up After-Hours Thursday

NEW YORK (TheStreet) -- GameStop (GME) was gaining 1.8% to $37.55 in after-hours trading Thursday after beating analysts' estimates for earnings in the first quarter thanks to continued interest in new consoles.

The video game retailer reported earnings of 59 cents a share for the first quarter, beating the Capital IQ Consensus Estimate of 57 cents a share by 2 cents. Revenue grew 6.4% year-over-year to $1.99 billion in the quarter. Analysts expected revenue of $2.03 billion for the quarter.

The increase in revenue was thanks to continued demand for the Sony (SNE) PlayStation 4 and the Microsoft (MSFT) Xbox One following their respective launches in November.

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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 number of 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, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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