In the company’s first results since its CEO departed,
GameStop
reports that its loss narrowed. Shares jumped on the better-than-expected earnings report.
The videogame seller reported a loss of 3 cents a share on Wednesday, topping estimates for a loss of 14 cents, on sales of $1.16 billion, beating forecasts for $1.14 billion.
GameStop (ticker: GME) managed that feat by cutting expenses to 27.7% of net sales, down from 34.1% during the same quarter one year ago. The company finished the quarter with $1.195 billion in cash, cash equivalents, and marketable securities on its balance sheet.
After the departure of CEO Matt Furlong in early June, the company’s largest shareholder Ryan Cohen took control of the company. However, despite the change in top brass, GameStop will continue its recent habit of not hosting a conference call to discuss results and sent interested investors to its 10-Q for more information.
The initial reaction to the report was solid, if not spectacular. GameStop stock was up 7.5% to $20.15 in after-hours trading Wednesday, though it had been up more than 10% at one point. Those gains evaporated in Thursday’s premarket. The stock is down 1.9%.
GameStop, the original meme stock, appears to be the last one standing.
AMC Entertainment
stock (AMC) has tumbled below its 2020 lows and dropped 37% Wednesday after announcing that the company would sell more shares. Though GME stock has been rangebound this year, shares are still well above where they were trading at the start of January 2020, when it went for $4.30.
GameStop lives to fight another day.
Write to Ben Levisohn at [email protected]
Read the full article here
