GameStop tanks after 4Q outlook falls short

NEW YORK (AP) - Shares of GameStop plunged almost 19 percent after a profit outlook from the world's largest video game retailer came in well below Wall Street expectations for the crucial holiday period, though sales were strong.

GameStop is forecasting fourth-quarter earnings of $1.85 to $1.95 per share for the fourth quarter, which ends this month. That's down from its earlier outlook of $1.97 to $2.14 per share.

The company expects full-year earnings of $2.96 to $3.06 per share.

Analysts had been looking for fourth-quarter earnings of $2.14 per share, according to a poll by FactSet. For the full year, analysts had projected $3.25 per share.

GameStop said that its sales at stores open at least a year increased 10.2 percent for the nine-week holiday season. That was much higher than the 4.4 percent increase that Wall Street had expected, according to Stifel analyst David Schick.

Sales at stores open at least a year is a key indicator of a retailer's health because it excludes the volatility typical of stores recently opened or closed.

Shares of GameStop Corp., based in Grapevine, Texas, fell $8.37, or 18.5 percent, to $36.95 in morning trading. The stock has traded in the 52-week range of $22.57 and $57.74.


(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Bunker Hideout
    Investigation reveals bunker on wanted couple's Yelm property
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear GeekWire on KIRO Radio
Join Todd Bishop and John Cook weekends on KIRO Radio to talk Seattle technology.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.