The company gave guidance for the fourth quarter as $2.08 to 2.24 in earnings per share, and same-store sales are expected to range from -5,0% to +2.0%. The consensus estimates are $2.28 in earnings per share and $4.12 billion in revenue.
During the quarter new hardware sales increased 147.4%, outpacing the industry growth rate of 102.4%. The company also reached 47.3% new software market share during the quarter, marking its second highest level ever.
The pre-owned/value category recorded its third consecutive quarter of positive growth with 2.6%. Sales in the mobile and consumer electronics segment rose 125%, driven by the continued expansion and strong results of Spring Mobile.
Paul Raines, CEO of GameStop said:
Overall, most of our major product categories performed very well, but our third quarter results were impacted by Assassin’s Creed Unity moving out of October. As we look at the holiday quarter, we are focused on relentlessly applying our competitive advantages: convenience, strong CRM, knowledgeable associates and value through our unique forms of currency, which include buy-sell-trade and the new PowerUp Rewards credit card, to deliver a successful quarter.
Shares of GameStop closed Thursday up 0.6% at $43.87. Following the release of the earnings report, the initial response in the post market was negative and shares were down over 11% at $39.00.
The stock has a consensus analyst price target of $52.07 and a 52-week trading range of $33.10 to $51.55. The company has a market cap of nearly $5 billion.
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