GameStop Stock Soars on Surprise Profit. The Short Squeeze Begins.

GameStop

reported a surprise profit in the fiscal fourth quarter, sending the stock soaring in late trading Tuesday.

The company reported earnings of 16 cents a share, compared to a loss of 49 cents a year earlier. Analysts polled by FactSet had forecast a non-GAAP loss of 13 cents a share, or 16 cents a share on a GAAP basis. Sales of $2.23 billion topped estimates at $2.18 billion.