- GameStop (NYSE:GME) stock opened more than 15 per cent lower on Wednesday after Q2 2024 sales were short of analyst forecasts but earnings beat expectations
- GameStop reported that its net income was US$14.8 million, beating the net loss of US$27 million analysts were expecting, better than the loss of US$2.8 million in Q2 2023
- The popular “meme-stock” also revised an open market sale agreement submitted to the U.S. Securities and Exchange Commission, enabling it to sell up to 20 million more shares of its Class A common stock (representing 4.7 per cent of total shares outstanding)
- GameStop Corp. shares opened trading at US$20.82, and they have risen 13 per cent since the year began
GameStop (NYSE:GME) opened more than 15 per cent lower on Wednesday after Q2 2024 sales were short of analyst forecasts but earnings beat expectations.
The video game and merchandise retailer surprised investors with a boost in quarterly income, but sales dropped more than 30 per cent below analyst expectations. In a media release, GameStop reported that its net income was US$14.8 million, beating the net loss of US$27 million analysts were expecting, according to FactSet, and was better than the loss of US$2.8 million in Q2 2023.
GameStop’s selling, general and administrative expenses were US$270.8 million (33.9 per cent of Q2’s net sales) compared with US$322.5 million (27.7 per cent of net sales) in Q2 2023.
The popular “meme-stock” also revised an open market sale agreement submitted to the U.S. Securities and Exchange Commission, enabling it to sell up to 20 million more shares of its Class A common stock (representing 4.7 per cent of total shares outstanding). Could this weaken investor confidence?
GameStop Corp. is a U.S. video game, consumer electronics and services retailer. The company operates across Europe, Canada, Australia and the United States. It sells new and second-hand video game hardware, physical and digital video game software, and video game accessories.
GameStop Corp. (NYSE:GME) shares opened trading at US$20.82, and they have risen 13 per cent since the year began.
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(Top photo of GameStop storefront: GameStop)