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GameStop Shares Down Following EPS Miss

Published 08/12/2021, 22:28
© Reuters

By Sam Boughedda

Investing.com — GameStop Corp (NYSE:GME) shares have fallen after hours on the back of its third quarter earnings, which saw it miss on EPS expectations but report higher than anticipated revenue.

The video game retailer announced a loss per share of $1.39 on revenue of $1.297 billion. Analysts polled by Investing.com anticipated a per-share loss of 52 cents on revenue of $1.19 billion.

GameStop shares have reacted negatively to the report, currently down 3%.

The company's increase in sales was attributed to new and expanded brand relationships, such as Samsung (KS:005930), LG, Razer, Vizio and others, contributing to GME's growth in the quarter.

GameStop said its inventory was $1.141 billion at the close of the quarter, compared to $861 million at the close of the third quarter of 2020. This reflected the company's focus on "front-loading investments in inventory to meet increased customer demand and mitigate supply chain issues."

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