GameStop 'Much Healthier Business Today' Than At Start Of 2021: CEO

GameStop Corporation GME CEO Matt Furlong said at the company’s fourth-quarter earnings conference that the retailer was much “healthier” in the present day than when 2021 began.

What Happened: Furlong said GameStop has “considerable cash on hand, negligible debt, streamlined inventory, and a path to full-year profitability.”

He said though the company faced a lot of “hard work” and “execution” ahead of it, GameStop is a “much healthier business today than it was at the start of 2021.”   

“Our plan is to use this strong positioning to continue delivering a unique customer experience and long-term stockholder value,” said Furlong.

Numbers shared by Furlong indicate that the company finished the year with cash, cash equivalents, and marketable securities at $1.39 billion. At the end of 2021, GameStop had ended the fiscal year with $1.27 billion.

See Also: Is GameStop (GME) Stock A Buy Right Now?

Why It Matters: Furlong compared the state of GameStop with early 2021. A period where there was considerable short interest in the then-struggling company, which eventually led to a retail trader frenzy.

Retail traders took on short sellers in a battle in early 2021 which led to the likes of Melvin Capital and Citron Research throwing in the towel.

GameStop said on Tuesday that its fourth-quarter revenue came in at $2.25 billion, which beat a Street estimate of $2.18 billion.

The company reported earnings per share of 16 cents, which beat a Wall Street estimate of 13 cents per share, according to Benzinga data.

Price Action: On Tuesday, GameStop shares shot up 48.5% higher to $26.20 in the after-hours trading after closing 4.6% higher at $17.65 in the regular session, according to Benzinga Pro data.

Read Next: Trading Strategies For GameStop Stonk Before And After Q4 Earnings


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Posted In: EarningsGamingNewsGuidanceTop StoriesGeneralMatt FurlongMeme Stocks
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