GameStop Shares Plummet 18% Following Down Earnings, Sales

Shares of GameStop Corp. fell more than 18% in pre-market trade after the gaming retail company reported lower-than-expected earnings and sales. GameStop reported net income of $56 million during the third quarter, or 53 cents per share, compared with $56.4 million, or 50 cents per share, in the year earlier period. Adjusted earnings per share were 54 cents; FactSet's consensus was 59 cents. Sales fell about 4% to $2.01 billion from $2.09 billion during the same period a year ago. The FactSet consensus was $2.13 billion. GameStop Chief Executive Paul Raines said in a statement that results were low due in party to lower-than-expected new software and hardware sales. GameStop shares are up 16% so far this year, while the S&P 500 index is up more than 1%.