GameStop Shares Slump Following First-quarter Earnings

Shares of GameStop Inc. skidded in Thursday's extended session after the videogame retailer released its quarterly results. GameStop reported first-quarter earnings of $59 million, or 58 cents a share, compared with $65.8 million, or 63 cents a share, a year earlier. On an adjusted basis, the Grapevine, Texas-based company would have earned 63 cents a share. Revenue rose to $2.05 billion from $1.97 billion while same-store sales grew 2.3% on the back of the Nintendo Switch launch. Analysts surveyed by FactSet had forecast earnings of 53 cents a share on revenue of $1.97 billion. The company also reiterated its earnings per share outlook of $3.10 to $3.40 and same-store sales target of minus 5% to flat. Wall Street is projecting EPS of $3.32 on the average and comparable sales to fall 2.1%. GameStop shares sank 5.8% after hours.