Shares of GameStop hit 13-Year low after missing its full-year profit forecast despite the earnings beat on Wednesday last week. The company announced its outlook for 2018 which majority of the data declining from the previous forecast.
In further details, GameStop revised its total sales forecast from -2.0% to -6.0%. The company’s comparable sales is now estimated to decline after being estimated to remain flat. It is expected to have a -5% decline during the year.
Furthermore, The company revised its Diluted Earnings Per Share (EPS) to $3.35 from $3.00. Company expenditures might also hit $120.00 million if the forecast meets expectations.
“While we had a solid performance in 2017, there are still many areas to improve that will drive future profitability. We have three core profitable businesses; Video Games, Collectibles, and Technology Brands. Moving forward over the next year, we plan to pause on investing in additional new businesses or acquisitions and focus on the fundamentals of improving the businesses that we already have.” Chief Executive Officer of GameStop Maike Mauler, told reports.
GameStop Q4 Results
As mentioned, GameStop recently posted its fiscal results for the fourth quarter last week. Despite the negative outlook, the company did post optimistic results which some exceeding market estimates.
Earnings per share of the company for the fourth quarter was at $2.02. During the quarter, GameStop also revealed that its revenue rose 15% which is $3.50 billion in value.
The income loss of the gaming retail company recorded a data of $105.9 million which is $1.04 per diluted share. Compared to last year’s data of $20.87 million, this was an improvement.
“Our fourth quarter performance continued to demonstrate that GameStop is the preferred destination for the gaming and collectibles customer. ” Mauler expressed further. “Our industry leading position enabled us to provide customers with the best selection of consoles and games for the best price, in turn increasing our market share for the quarter. Our collectibles business also continued to deliver robust growth, further demonstrating that the business will be an accelerating contributor to GameStop’s profitability.”
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