GameStop’s stock jumps on surprise third-quarter profit

Earnings Results

GameStop shares up 8.2% in extended trading

Last Updated: Dec. 10, 2024 at 4:45 p.m. ET
First Published: Dec. 10, 2024 at 4:25 p.m. ET

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Shares of GameStop Corp. were up 8.2% in extended trading after the videogame retailer reported a surprise third-quarter profit, despite falling sales.

GameStop, the original meme stock, posted late Tuesday third-quarter sales of $860 million, down from $1.078 billion in the prior year’s quarter. The average estimate of two analysts surveyed by FactSet was $888 million. GameStop earned $17.4 million, or 4 cents a share, in the quarter, after a loss of $3.1 million, or 1 cent a share, in the same period last year.

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On an adjusted basis, GameStop earned 6 cents a share, above the FactSet estimates for a loss of 3 cents a share, also based on projections from the two analysts.

GameStop ended the quarter with cash, cash equivalents and marketable securities of $4.616 billion, up from $929.2 million at the end of the same period last year.

Related: GameStop CEO Ryan Cohen is happy about Trump’s victory. The stock is climbing.

The Grapevine, Texas-based company said that it completed its previously disclosed “at-the-market” equity offering during the third quarter by selling 20 million shares of its common stock for approximately $400 million. “The Company does not anticipate any further at-the-market offerings involving the offer and sale of its common stock during the current fiscal year,” GameStop added in a statement.

The videogame retailer also swung to a quarterly profit last quarter. GameStop shares, which were lifted by the return to social media earlier this year of influential trader Keith Gill, also known as Roaring Kitty, after a several-year hiatus, are up 53.6% in 2024 through Tuesday. The S&P 500 index

is up 26.5% this year.