GameStop Down 7% on Weak Q2 Guidance

GameStop Corp GME is trading lower on the session following its Q1 earnings annou0ncement. The company reported an EPS of $0.54 vs $0.54 estimates and revenues of $2 billion vs $2.05 billion estimates. GameStop also guided Q2 EPS $0.10-0.18 vs $0.25 estimates. Paul Raines, chief executive officer, stated: “GameStop continues to outperform the market in new game sales through the late stages of this console cycle. Despite slower store traffic during the quarter, we achieved our earnings target due primarily to gross margin expansion and positive profit contributions from our pre-owned, mobile and digital businesses. We expect those segments to fill the profitability gap as we transition to the new console cycle.” GameStop is currently trading at $19.40, a loss of $1.44 or 6.91%.