GameStop Corp (NYSE:GME) stock powered down before the bell Wednesday after the company posted fiscal fourth-quarter results late Tuesday that missed on earnings and revenue.
The video game retailer reported earnings of $1.45 per share on revenue of $3.06 billion, down from $1.74 EPS on revenue of $3.3 billion. Analysts had expected $1.58 EPS on revenue of $3.28 billion.
Looking forward, the Grapevine, Texas-based company is optimistic about its future under new CEO George Sherman, who will step into the new role on April 15.
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"As we think about 2019 and beyond, we recognize the challenges facing our pre-owned video game business and are prepared to address them as we continue to evolve our business model going forward," Chief Operating Officer Rob Lloyd said. "Importantly, we will continue to leverage our powerful brand to drive growth and, with a new cost savings and profit improvement initiative in place, we will focus our efforts on driving profitability."
The company declined to post full-year guidance but expects a fiscal first-quarter sales dip between 5% and 10% and earnings to come in between breakeven and a loss of $0.05 per share.
Analysts anticipate $0.18 EPS on revenue of $1.69 billion.
The share price dropped 11.8% to $8.91 in pre-market trading.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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