When GameStop Corp. (NYSE: GME) reported fiscal first-quarter financial results after markets closed Thursday, the company said that it had $0.63 in earnings per share (EPS) and $2.05 billion in revenue. Consensus estimates from Thomson Reuters had called for $0.51 in EPS and revenue of $1.94 billion. The same period of last year reportedly had EPS of $0.66 and $1.97 billion in revenue.
During the quarter, the company saw consolidated comparable store sales growth of 2.3% (−2.4% in the United State and +17.1% internationally). New hardware sales increased 24.6%, led by the highly sought after Nintendo Switch. New software declined 8.2% due to the tough overlap of a few key AAA titles launched last year. Pre-owned sales declined 6.2%, in line with the company’s expectations.
At the same time, Collectibles sales increased 39.1% to $114.5 million, driven by strong global sales of Pokémon-related products.
In terms of guidance for the full fiscal year, the company reiterated guidance and expects to see $3.10 to $3.40 in EPS and comparable sales in the range of down 5% to flat. The consensus estimates are $3.29 in EPS and $8.6 billion in revenue.
On the books, GameStop cash and cash equivalents totaled $311.9 million at the end of the quarter, compared with $473.6 million in the same period from last year.
Paul Raines, CEO, commented:
Our first quarter results reflect the power of our leadership position within the video game market and our ongoing diversification efforts. Our international operations were particularly strong, driven by robust sales of Nintendo Switch and Collectibles. Throughout 2017, our focus will continue to be executing our diversification strategy, exercising cost discipline and increasing our share in the video game market.
Shares of GameStop closed Thursday up 4% at $23.62 but were down more than 7% to $21.92 in Friday’s premarket. The consensus analyst price target is $23.92, and the 52-week trading range is $20.10 to $32.67.