GameStop Is Surging After Profit Tops Expectations

GameStop (GME) is surging after hours after reporting first quarter profit of $US0.59 per share, topping expectations for $US0.57.

GameStop reported first quarter sales grew 7% to $US2 billion, just shy of the $US2.03 billion analysts had been expecting. On a comparable store basis, sales grew 5.8% during the quarter.

GameStop’s second quarter and full year profit outlooks were also in-line with estimates, and the company said it expects full year sales, on a comparable store basis, to grow 6% to 12%.

GameStop said new software sales fell 20% during the quarter, owing to fewer ‘AAA’ titles being released than during the prior year period.

Shares of GameStop, which gained 100% during 2013, are down 25% year-to-date. The stock is one of the most heavily shorted among companies with a market cap larger than $US2 billion, according to data from Finviz.

Shares of GameStop, which were up as much as 7% following the report, are currently up 2.5%.

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