Why GameStop (GME) Stock Is Soaring In After-Hours Trading Today

NEW YORK (TheStreet) -- Shares of GameStop Corp.  (GME) are up 7.19% to $43.40 in after-hours trading after the multichannel video game retailer reported fiscal second quarter earnings of $24.6 million, or 22 cents per share, on revenue of $1.73 billion.

A year ago, the company earned $10.5 million, or 9 cents a share, on $1.38 billion in sales.

Analysts surveyed by FactSet forecast GameStop to earn 18 cents a share on $1.64 billion in sales.

 

The company also gave a third quarter profit range of between 58 cents and 64 cents a share.

Analysts had forecast earnings of 58 cents 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 several positive factors, 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, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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