News
GameStop (GME) Q1 Earnings, Plans to Sell More Shares
GameStopThe video game retailer currently riding another wave of business enthusiasm spurred by the “Roaring Kitty” meme merchant, showed no signs of an operational turnaround in its dismal fiscal first-quarter results.
The company on Friday reported net sales of US$881.8 million for the period, a 29% drop from US$1.237 billion the previous year. The drop in sales was steeper than the two Wall Street analysts who cover the stock expected. Their estimates were in the range of $900 million to $1.09 billion per FactSet.
GameStop lost $32.3 million during the quarter, a smaller loss than the $50.5 million it suffered in the year-ago period.
The company also gave an update on its ongoing share sales, saying it would sell an additional 75 million shares in addition to the 45 million share sale announced in May, which raised more than $900 million.
The first quarter results were a surprise. The company – which would be the subject of a YouTube live stream by Keith Gillbetter known as Roaring Kitty on Friday – was supposed to release results the following Tuesday after the bell.
GameStop shares plunged 40% on Friday. Shares traded 30% higher at one point in overnight trading ahead of the earnings report. Shares rose 47% on Thursday in anticipation of Gill’s live broadcast.
On live broadcastGill revealed that he had no institutional backers and the GameStop positions he shared in screenshots were his only bets.
Gill also reiterated his previous investment thesis on GameStop, betting on a turnaround under CEO Ryan Cohen and offering few new arguments behind his large stake.
GameStop has been in crisis since Gill began posting after a hiatus of about three years. In the quarter, shares rose more than 271%.
Correction: This story has been updated to correct the number of additional shares GameStop is selling.