GameStop Beats Earnings Estimates; Shares Up 7%
Shares of GameStop (NYSE: GME) took off in Thursday's after-hours session, as the video game retailer reported Q2 2014 earnings.
The earnings release consisted of EPS at $0.22, compared to analyst expectation of $0.18, and revenue of $1.73 billion versus consensus $1.63 billion. EPS was up 144 percent from Q2 2013, while comps for Q2 increased by a whopping 21.9 percent, making a new high score for GameStop. Sales increased by 25 percent year over year.
GameStop reported new hardware sales surged by 124.8 percent, while worldwide demand for Microsoft's Xbox One and Sony's PlayStation 4 remains consistently high.
New software sales increased by 15.6 percent due to the solid performance of new gaming title releases. Pre-owned/value segment grew by nearly 5.5 percent for the quarter, consecutively.
GameStop released Q3 2014 EPS guidance between $0.58 to $0.64, compared to analyst estimates of $0.58.
Share were last trading at $43.30, up 6.9 percent.
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