GameStop Q4 Earnings Highlights: Shares Rocket Higher On Revenue, EPS Beat

Zinger Key Points
  • GameStop reported fourth-quarter net sales of $2.22 billion.
  • The company's sales and earnings per share both came in ahead of Street estimates.
GameStop Q4 Earnings Highlights: Shares Rocket Higher On Revenue, EPS Beat

Video game retailer GameStop Corp GME announced fourth-quarter financial results after the market close Tuesday. Here are the key highlights.

What Happened: GameStop reported fourth-quarter net sales of $2.22 billion, compared to $2.25 billion in last year’s fourth quarter.

The revenue total beat a Street estimate of $2.18 billion from analysts, according to data from Benzinga Pro.

GameStop reported earnings of 16 cents per share in the fourth quarter, beating a Street estimate of a loss of 13 cents per share.

The company reported inventory of $682.9 million at the end of the fourth quarter, down from $915 million in the prior year. The company ended the fourth quarter with cash and cash equivalents of $1.39 billion.

GameStop said its only long-term debt is a low-interest, unsecured term loan from the French government’s response to COVID-19.

For the full fiscal year, GameStop reported net sales of $5.93 billion, compared to $6.01 billion in the prior year period.

Related Link: Trading Strategies For GameStop After Q4 Earnings

What’s Next: The company cited its collectibles category as a strong growth driver in the full year and a focus going forward.

GameStop also said it has set a go-forward strategic direction that is “focused on efficiency, profitability and pragmatic growth.”

The company will host a conference call Tuesday at 5 p.m. ET to discuss the results.

GME Price Action: GameStop shares are up 34% to $23.52 in after-hours trading at the time of writing. 

Read Next: GameStop Q4 Earnings Preview: Analysts See Revenue Decline In Company's Most Important Quarter

Photo via Shutterstock. 

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