GameStop (NYSE:GME) delivered mixed third-quarter results, with stronger-than-expected earnings offset by a significant revenue shortfall. The news led to an 8% surge in the company’s stock intra-day today.
For the quarter, the video game retailer reported adjusted earnings per share of $0.06, defying analysts’ projections of a $0.05 loss. However, revenue fell to $860.3 million, missing the $919.9 million estimate and marking a sharp 20.2% drop compared to $1.08 billion in the same period last year.
The decline in revenue was evident across the company’s core segments. Hardware and accessories brought in $417.4 million, software contributed $271.8 million, and collectibles generated $171.1 million in sales.
Despite the revenue shortfall, GameStop posted a net income of $17.4 million for the quarter, a marked improvement from the $3.1 million net loss recorded in the prior year. The company ended the period with $4.62 billion in cash and marketable securities, maintaining a strong liquidity position.