When GameStop Corp. (NYSE: GME) released its fiscal fourth-quarter financial results after the markets closed on Wednesday, the company said that it had $2.02 in earnings per share (EPS) on $3.5 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.97 in EPS on revenue of $3.27 billion. In the same period of last year, GameStop said it had EPS of $2.38 and $3.05 billion in revenue.
During the quarter, new hardware sales increased 44.8%, led by demand for Nintendo Switch, and new software sales increased 12.4%, driven by a strong title lineup. Consistent with the company’s expectations, pre-owned sales declined 2.6%. Worldwide omnichannel sales increased by 24.8% on the strength of new hardware sales.
GameStop recorded comparable store sales growth of 12.2%, made up of an increase of 14.2% in the United States and an increase of 8.3% internationally.
Looking ahead to the fiscal 2018 full year, the company expects to see EPS in the range of $3.00 to $3.35 and total sales down 2% to 6%, with comparable sales flat to down 5%. The consensus estimates call for $3.32 in EPS on $8.84 billion in revenue for the year.
On the books, GameStop’s cash and cash equivalents totaled $864.4 million at the end of the quarter, up from $669.4 million in the same period of last year.
CEO Mike Mauler commented:
Our fourth quarter performance continued to demonstrate that GameStop is the preferred destination for the gaming and collectibles customer. Our strong sales performance over the holiday period and throughout the fourth quarter was driven by compelling Black Friday and holiday promotions, driving growth in hardware, particularly the Nintendo Switch. Our industry leading position enabled us to provide customers with the best selection of consoles and games for the best price, in turn increasing our market share for the quarter. Our collectibles business also continued to deliver robust growth, further demonstrating that the business will be an accelerating contributor to GameStop’s profitability.
Shares of GameStop closed Wednesday at $14.15, with a consensus analyst price target of $20.40 and a 52-week range of $13.49 to $25.31. Following the announcement, the stock was down over 4% at $13.51 in early trading indications Thursday.