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Retail

To the moon? GameStop shares surge on first quarterly profit in two years

GameStop Corp (NYSE:GME), the former face of meme stocks, is once again headed in the moon’s general direction after posting fiscal fourth-quarter results that outpaced expectations.

The videogame retailer swung to its first quarterly profit in two years, posting earnings of $0.16 per share in the period ended January 28, compared to a loss of $0.49 per share a year earlier and easily beating Street expectations of a $0.13 per share loss.

Revenue was $2.226 billion, down from $2.254 billion but also beating Street expectations of $2.18 billion.

For the full fiscal year, GameStop reported $5.93 billion in sales, down from $6.01 billion in fiscal 2021. However, it did see growth from its collectibles category, which the retailer hopes will deliver long-term growth.

Shares of GameStop rocked 35% higher in after-hours trading to $23.80.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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