The video game retailer reported EPS of 59 cents a share for the first quarter, beating analysts' estimates of 57 cents a share by 2 cents. Revenue grew 6.4% from the year-ago quarter to $1.99 billion. Analysts surveyed by Thomson Reuters expected revenue of $2.03 billion for the quarter.
Comparable store sales were up 5.8% year-over-year in the quarter, and new hardware sales were up 81.1% thanks to the new Sony (SNE) PlayStation 4 and Microsoft (MSFT) Xbox One. New software sales grew 20.4% in the quarter, and used game sales rose 5.3%.
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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."