GameStop reported earnings of 57 cents a share for the third quarter, below the 61 cents a share that analysts expected for the quarter. Revenue fell 0.9% year over year to $2.09 billion, below analysts' estimates of $2.2 billion.
GameStop said it now expects to report earnings of $3.40 to $3.55 a share for the full year, down from its previous estimate of $3.40 to $3.70 a share for the year. Analysts expect earnings of $3.68 a share for the year.
The video game retailer said that comp able sales fell 2.3% from the year-ago quarter due to delay of Assassin's Creed: Unity. New hardware sales grew 147.4% in the quarter, though new software fell 34.4% from the year-ago quarter.
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, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."