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GameStop Stock Explodes 33% Higher After Delivering Surprise Profit

Q3 23 Earnings:
Rev $2.23B (est $2.18B)
Adj EPS $0.16 (est -$0.15)

$GME 23.48 ▲ 5.83 (▲33.07%) After Hours

GameStop posted a quarterly profit for the first time in two years.
The company is still hanging on to $682.9 million in inventory, which is down from $915 million a year ago.

The video game retailer also posted a profit of $48.2 million, or 16 cents a share, compared to a loss of $147.5 million, or 49 cents, a year ago. GameStop did not provide financial guidance and has not given guidance since the early days of the pandemic.

For the full fiscal year, GameStop saw $5.93 billion in sales, down slightly from $6.01 billion in fiscal 2021, and saw increased revenues from its collectibles category, which the retailer is banking will bring long-term growth for the company

As part of its revival strategy, GameStop has also been trying to improve its cash balance. This quarter, its cash and cash equivalents were $1.39 billion.

The company has also been experimenting with an NFT marketplace since July. That launch came amid chatter of a “crypto winter” as cryptocurrencies experienced a widespread cool-down from their 2021 rallies. The marketplace saw an initial volume surge but has since leveled off and may not be the ticket to a stable digital presence that the company had hoped.