Shares of GameStop Corp (NYSE: GME) shot up nearly 50% in extended hours after the gaming merchandise retailer reported its first quarterly profit in about two years.
What CEO Furlong said on the call
The Texas-based company also confirmed today that most of its infrastructure, shipping capabilities, systems, and online/mobile platforms related upgrades are now complete.
CEO Matt Furlong also said on the earnings call that GameStop is continuing to trim costs and improve terms with suppliers to further improve efficiency and profitability.
It’s committed to expanding footprint in high-margin categories like toys and collectibles as well, he added. Wall Street currently has a consensus “underweight” rating on the GameStop stock.
Notable figures in GameStop’s Q4 report
- Earned $48.2 million that translates to 16 cents per share
- That compares to $147.5 million loss (49 cents) a year ago
- Sales declined around 1.0% year-on-year to $2.23 billion
- Consensus was 13 cents loss on $2.18 billion in revenue
Pro shares his view on GameStop stock
The video game retailer ended the quarter with $682.9 million of inventory – down significantly from $915 last year, as per the earnings press release. Sharing his outlook on the GameStop stock, S3 Partners’ Ihor Dusaniwsky said on Yahoo Finance Live:
The short interest is not nearly as much as we saw a couple years ago. It’s calmed down a bunch but the volatility is still there. It’s still a meme stock. You’re still going to have a lot of action on both sides of the trade.
Versus its low last week, GME is now up roughly 65%.
Source: https://invezz.com/news/2023/03/21/gamestop-stock-jumps-on-quarterly-profit/