Gamestop is surging after earnings beat expectations

GameStop shares jumped as much as 8% in after hours trading after a big earnings beat.

The consumer electronics retailer posted adjusted earnings per share of $US0.68, a 15% year-over-year increase and beating estimates for $US0.58 according to Bloomberg.

GameStop reported sales of $US2.06 billion, an 8.1% increase in constant currency, beating estimates for $US2.01 billion.

CEO Paul Raines said in the statement: “Our first quarter results exceeded expectations, displaying our market leadership and our ability to drive and leverage our core video game business and expand our diversified businesses to deliver healthy profits and solid top-line growth.”

“This performance confirms that our effort to transform GameStop into a family of specialty brands is the right strategy to drive durable revenues and shareholder value.”

GameStop raised its diluted EPS guidance for the full year from $US3.60-$US3.80 to $US3.63-$US3.83, due to the reduction in shares outstanding.

The company repurchased $US46.4 million worth of its shares in the first quarter; it has $US400.9 million remaining on its share repurchase authorization.

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