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GameStop Shares Drop Nearly 7% As Company Reports Q1 Earnings Miss

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GameStop Shares Drop Nearly 7% As Company Reports Q1 Earnings Miss

The shares of GameStop (NYSE: GME) dipped 6.85% in the after-hours session on Tuesday as the video game retailer missed analyst expectations in its first quarter earnings.

Q1 Earnings

GameStop reported net sales of $1.02 billion for the quarter ending in March, down 34.2% from the similar quarter a year ago, where it posted $1.55 billion.

The net sales were also 6.4% below the average analyst consensus estimate of $1.09 billion.

The Texas-based company said it made an adjusted loss per share of $1.61, compared to the 7 cents earnings posted in the first quarter last year.

Analysts had estimated a loss per share of 46 cents.

The video game company's sales were impacted by the novel coronavirus (COVID-19) pandemic, as stores remained shut across the United States, and it shifted the launch of some of its key titles to the second and third quarters, Chief Executive Officer George Sherman said in a statement.

GameStop Price Action

GameStop shares closed 1% lower at $4.96 on Tuesday. The shares traded another 6.85% lower at $4.62 in the after-hours session.

 

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Posted-In: Covid-19 video gamesEarnings News Retail Sales General Best of Benzinga