News Column

GameStop Stocks Climb as Profit Beats Street's View

May 23, 2014

Associated Press

NEW YORK (AP) GameStop's stock rose Friday as the video game retailer's first-quarter profit beat analysts' expectations, helped by demand for the Xbox One and PlayStation 4.

On Thursday GameStop reported earnings of 59 cents per share on revenue of $2 billion for the quarter that ended on May 3. Analysts surveyed by FactSet predicted earnings of 57 cents per share on revenue of $2.02 billion.

Shoppers' demand for Microsoft's Xbox One and Sony's PlayStation 4 consoles helped GameStop's sales rise 7 percent from the year before.

"Since the launch of Xbox One and PS4 in November last year, (GameStop) has been a key destination for these next-gen consoles as well as next-gen software," Arvind Bhatia of Sterne, Agee & Leach said in a client note.

On the software side, the video game "Watch Dogs," available next week, is the highest pre-ordered next-generation console game the company has had, said Bob Puzon, senior vice president of merchandising at GameStop.

Shares of GameStop Corp. added $1.76, or 4.8 percent, to $38.64 in Friday morning trading. The shares are still off about 21 percent in 2014.


Original headline: GameStop climbs as 1Q profit tops Street's view

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