A hefty tax benefit helped drive GameStop’s fiscal fourth-quarter profit sharply higher, but the video-game retailer’s sales declined despite a surge in its online business. The company's latest results fell short of Wall Street’s expectations.
The company, whose stock price soared in January after a social media-fueled frenzy, said Tuesday that it would suspend providing earnings guidance as it focuses on an effort to transform into a more online-focused retailer.
The Grapevine, Texas, company reported a net income of $80.5 million, or $1.19 per share, for the three months ended January 30. That compares with a net income of $21 million, or 32 cents per share, a year earlier.
The latest results include a nearly $70 million tax benefit. Adjusted for that and other one-time items, the company’s earnings amounted to $1.34 per share, versus $1.27 a year earlier.
Revenue fell to $2.12 billion, from $2.19 billion. Analysts were expecting adjusted earnings of $1.35 per share on $2.21 billion in revenue, according to FactSet.
The company said global e-commerce sales made up 34% of net sales in the fourth quarter compared with 12% in the year-ago quarter. As GameStop attempts to transition more of its business online, the company recently named board member Ryan Cohen to spearhead that transition.
GameStop shares were little changed in after-hours trading. They fell 6.6% to $181.75 in the regular trading session.
What do Arnold Schwarzenegger, Aubrey Plaza, and Tom Brady all have in common? You'll see them on Super Bowl Sunday, but not on the field. If you only watch the Super Bowl for the ads, here's a sneak peek.
The Federal Communications Commission knows (to loosely quote Drake) "when that [AI robocall] hotline bling, that can only mean one thing" — deception. The agency says bad actors have been using these voices to misinform voters.
David Stryzewski, CEO of Sound Planning Group, breaks down Disney’s latest results, from adding Taylor Swift to building out ESPN, and why Bob Iger’s leadership is crucial.
Kevin Cohee, CEO and chairman of OneUnited Bank, discusses the power of financial literacy and how education and technology can help bridge the racial wealth gap.
Alex McGrath, Chief Investment Officer at NorthEnd Private Wealth, discusses why the A.I. hype can’t power the market forever and how to position investments in the current market.
Paul Verna of Insider Intelligence breaks down how the company is positioned, whether they can make their streaming service profitable, and the upper limit of streaming bundle prices.
From Flamin’ Hot Cheetos to Sweet Heat Starburst, America’s snacks are getting spicier. Now, Coca-Cola wants in on the trend. The beverage giant introduced Coca-Cola Spiced, the first new permanent offering to its North American portfolio in three years.
