GameStop Corp. (GME) announced a decline in third quarter net earnings to $46.7 million from $52.0 million last year. On a per share basis, earnings were $0.28, down from $0.31 in the prior year. The current period results reflect foreign currency fluctuations and merger-related expenses, the company noted.
On a non-GAAP basis, the company reported 20.6% increase in third quarter earnings to $63.3 million from $52.5 million in the prior year. Non-GAAP earnings per share were $0.38, compared to $0.32 last year.
On average, 16 analysts polled by First Call/Thomson financial expected the company to earn. Analysts' estimates typically exclude special items
GameStop sales increased 5.2% to $1.696 billion from $1.611 billion a year ago. Comparable store sales decreased 1.8%. Analysts were looking for $1.82 billion.
For the fourth quarter, GameStop now forecast earnings per share to range from $1.29 to $1.34, an increase of 13% to 18% over the prior year quarter. Comparable store sales in the fourth quarter are expected to increase in a range of 4% - 5%. Wall Street expects $1.37 per share on sales of $3.38 billion.
For the full year, earnings per share is expected in a range from $2.35 - $2.40, up 30% to 33% over the prior year. Earlier expectation was in a range of $2.45 - $2.50 per share. Street expectation is $2.46 per share on sales of $8.82 billion.
Comparable store sales are projected to increase between 10% and 11% for the full year, with total sales growing between 21% and 22%. Earlier comparable store sales projection was an increase between +12% and +14%, with total sales growing between +23% and +25%.
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