NEW YORK (TheStreet) -- Shares of GameStop (GME) were plunging 13.29% to $20.43 in early-morning trading on Wednesday after slashing its full-year outlook and warning that third-quarter results will likely miss estimates.
"Our expectation was that the new titles released in October would provide a catalyst for new software sales, but despite gaining market share, the titles underperformed our forecasted sales," CEO Paul Raines said in a statement.
The video game retailer now expects to report 2016 earnings between $3.65 and $3.80 per share, down from between $3.90 and $4.05 per share.
Same-store sales are projected to be down between 9.5% and 6.5% year-over-year vs. past expectations of a drop between 4.5% and 1.5%.
The FactSet consensus is for earnings of $4.01 per share and a same-store sales decline of 3.2% for the year.
For the third quarter, GameStop anticipates earnings between 45 cents and 49 cents per share on revenue of roughly $2.00 billion, according to a company statement. This would result in a same-store sales decline between 7% and 6%, the company said.
Analysts surveyed by FactSet are modeling earnings of 57 cents per share on revenue of $2.09 billion for the quarter. Wall Street is looking for same-store sales to be down 0.9%.
GameStop will report third-quarter results after the market close on November 22.
(GameStop stock is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.