GameStop Profit Rises, Lifts FY Outlook - Update

(RTTNews) - GameStop Corp. (GME) on Thursday reported an increase in profit for the first quarter, as the video-game retailer's revenue and same-store sales rose, with both earnings and revenues topping Wall Street expectations.

Moving ahead, the company detailed a strong outlook for the second quarter and lifted its full year guidance.

Grapevine, Texas-based GameStop's first-quarter profit rose to $73.8 million or $0.68 per share from $68.0 million or $0.59 per share last year. On average, 18 analysts polled by Thomson Reuters estimated earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude one-time items.

GameStop's revenues for the first quarter rose 3.2 percent to $2.06 billion from $2.0 billion last year, largely driven by 9.6 percent growth in new software sales. Analysts had a consensus revenue estimate of $2.01 billion for the quarter.

Same-store sales increased 8.6 percent, with 9.1 percent growth in the U.S. and 6.9 percent increase internationally, led by double digit same store sales increases in Australia and Canada.

CEO Paul Raines said, "This performance confirms that our effort to transform GameStop into a family of specialty brands is the right strategy to drive durable revenues and shareholder value."

Looking forward to the second quarter, the company expects earnings of $0.21 to $0.25 per share and comparable store sales to range from flat to 3 percent. Analysts currently expect earnings of $0.21 per share for the quarter.

For the full year 2015, the company now sees earnings of $3.63 to $3.83 per share, up from its prior guidance of $3.60 to $3.80 per share. Analysts currently expect earnings of $3.83 per share for the year.

Full-year comparable store sales are still expected to range from 1.0 to 6.0 percent.

GME closed Thursday's trading at $40.92, up $1.45 or 3.67%, on the NYSE. The stock further gained $1.58 or 3.86% in the after-hours trading.