Key Takeaways
- GameStop swung to an unexpected profit in the second quarter, but its sales fell 31% and missed expectations.
- The meme stock standout struggled Tuesday before its results came out, but the stock is still substantially higher year-to-date.
- GameStop did not issue guidance, nor did it schedule an earnings call.
GameStop’s (GME) second quarter sales declined year-over-year, missing Wall Street’s expectations, but the video game retailer managed to swing to a surprise profit.
Revenue in the latest was $798 million, down 31% year over year and short of the Visible Alpha analyst consensus. Net income jumped to $14.8 million, 4 cents per share, compared to a loss of $2.8 million, or 1 cent per share, a quarter earlier. Analysts had expected the company’s loss to widen year-over-year.
Shares of GameStop fell more than 3% ahead of the results Tuesday and are down a bit less than 1% after the bell. The stock is up nore than 30% in 2024, due in part to spikes in its share price earlier this year driven by posts from the meme stock influencer known as “Roaring Kitty.”
GameStop said it would not hold an earnings call, and the company did not release guidance.