NEW YORK (TheStreet) -- Gamestop (GME) shares are up by 7.48% to $43.98 in early market trading on Friday, after the video game retailer reported its first quarter earnings results following the closing bell yesterday.
The Grapevine, TX-based company reported that net income rose 9% to $73.8 as revenue from new games increased 9% year over year. On a per share basis the company reported earnings of 68 cents on net revenue that increased by 3% to $2.06 billion.
Analysts on average were expecting the company to report earnings of 58 cents per share on revenue of $2.04 billion.
The company typically experiences a slowdown in the second quarter and issued current quarter earnings guidance between 21 cents per share and 25 cents per share. Analysts are expecting the company to earn 21 cents per share in the period.
"Our first quarter results exceeded expectations, displaying our market leadership and our ability to drive and leverage our core video game business and expand our diversified businesses to deliver healthy profits and solid top-line growth. This performance confirms that our effort to transform GameStop into a family of specialty brands is the right strategy to drive durable revenues and shareholder value," said CEO Paul Raines.
Insight from TheStreet's Research Team:
Real Money Pro's Chris Laudani had this to say about GameStop's prospects going forward:
GameStop (GME) is up almost 17% year to date and the company reports results tonight after the close. I think the stock could go higher, since 2015's second half is packed with a strong slate of new releases.