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GameStop shares in freefall as earnings miss estimates

GameStop Corp (NYSE:GME) shares plunged after Tuesday's closing bell as the video game retailer’s fourth quarter and full-year financial performance failed to live up to investor expectations.

Shares of the meme stock were down 17.6% at $12.81 shortly after the release of its results.

For the fourth quarter which ended on February 3, 2024, GameStop reported sales of $1.79 billion against expectations of $2 billion and down from $2.23 billion in the year-ago quarter.

Earnings per share (EPS) improved from $0.16 in the year-ago quarter to $0.21, missing estimates of $0.25.

The company’s full-year results also disappointed, with revenue of $5.27 billion below expectations of $5.48 billion.

EPS of $0.02 missed estimates of $0.08, although marked an improvement over a loss per share of $1.03 for the previous fiscal year.

GameStop management did not provide any commentary on the results and, as previously announced, will not be holding a conference call.

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