GameStop Corp. stock jumped more than 8% in the extended session Tuesday as the videogame retailer at the center of the so-called meme-stock phenomenon said it had laid the groundwork for its “transformation” and reported lower-than-expected adjusted fourth-quarter earnings and sales.
said it earned $80.5 million, or $1.19 a share, in the quarter, compared with earnings of 32 cents a share in year-ago quarter.
Adjusted for one-time items, GameStop earned $90.7 million, or $1.34 a share, compared with $1.27 a share a year ago.
Sales fell to $2.12 billion, compared with $2.19 billion in the fiscal 2019 fourth quarter, despite store closures related to the pandemic, the company said.
Analysts polled by FactSet expected the videogame retailer to report adjusted earnings of $1.35 a share on sales of $2.21 billion.
GameStop said same-store sales rose 6.5% in the quarter, with online sales rising 175% for the quarter and 191% for fiscal 2020.
The company said it “strengthened” its balance sheet and ended the year with $635 million in cash, “laying the foundation for transformation.”
GameStop’s stock is often cited as one of the meme stocks that have skyrocketed in recent months thanks to frenzied boosts from Reddit comments and social-media posts.
Shares of GameStop have gained more than 800% in the past three months, compared with gains around 7% for the S&P 500 index