GameStop stock falls after earnings miss, confirmation of sale talks
Shares of GameStop Inc. were down 2.9% in after-hours trading Thursday, after the videogame retailer missed earnings expectations but confirmed that it was exploring a sale. The company reported a net loss of $24.9 million, or 24 cents, compared with net income of $22.2 million, or 22 cents, a year earlier. Adjusted earnings per share fell to 5 cents from 15 cents a year earlier. Analysts tracked by FactSet expected 8 cents a share. GameStop posted revenue of $1.65 billion, down from $1.69 billion a year earlier but ahead of the $1.62 billion analysts were projecting. The company reiterated its full-year outlook, which calls for total a total sales decline of 2% to 6%, for the period ending in January. The company confirmed that it "continues to engage with third parties regarding a possible transaction as part of a comprehensive review of strategic and financial alternatives initiated by the company's board of directors." Shares soared in Wednesday's session on a report of takeover interest. GameStop shares were down 10% so far this year, as of Thursday's close, while the S&P 050 had climbed 7.7%.
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