GameStop Corp.’s stock was falling 2.9% in extended trading Wednesday after the videogame retailer missed analysts’ revenue expectations with its fiscal third-quarter results, despite coming in better than anticipated on the bottom line.
The original meme-stock darling reported a net loss of $3.1 million, or 1 cent a share, compared with a net loss of $94.7 million, or 31 cents a share, in the prior year’s quarter. On an adjusted per-share basis, GameStop
GME,
broke even, whereas analysts surveyed by FactSet were expecting an 8-cent loss.
Revenue was $1.078 billion, compared with $1.186 billion in the prior year’s quarter. Analysts expected GameStop to report revenue of $1.182 billion.
In a filing, GameStop said that net sales in Australia, the United States and Canada decreased by 16.8%, 13.3% and 9.7%, respectively, while net sales in Europe grew 12.8% over the same period, boosted by decreased supply constraints.
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The company exited the quarter with cash and cash equivalents of $1.210 billion, compared with $1.195 billion at the end of the prior quarter.
As with its previous round of earnings, GameStop said it would not be holding a conference call.
In the filing, GameStop noted that its board of directors approved a new investment policy Tuesday, permitting the company to invest in equity securities, among other investments. The board has given Chairman and Chief Executive Ryan Cohen the authority to manage the investment portfolio.
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Cohen was named GameStop CEO in late September, the latest chapter in his attempt to breathe new life into the company.
GameStop shares, which have enjoyed a recent meme-like rally, are down 19.6% in 2023, compared with the S&P 500 index’s
SPX
gain of 18.5%.