GameStop (GME) Reports Mixed Q310 Results as Int'l Sales Soft; Raises Outlook

November 18, 2010 10:06 AM EST
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GameStop Corp. (NYSE: GME) is higher this morning following the company's third quarter earnings report. Shares are up 2.2%.

GME reported net income of $54.7 million, or an EPS of $0.36, versus a net income of $52.2 million reported for the same period in 2009. Excluding retirement costs, EPS came it at $0.38.

Sales for the retailer were $1.90 billion a 3.5% jump from $1.83 billion in Q309.

The Street was looking for an EPS of $0.37 with revs of $1.96 billion.

GamStop reprted that their top-selling games in the quarter were: Microsoft’s (Nasdaq: MSFT) Halo: Reach, Madden NFL 2011 from Electronic Arts (Nasdaq: ERTS), Fallout: New Vegas by Bethesda Softworks, NBA 2K11 from 2K Sports and Electronic Arts' Medal of Honor.

Comparable store sales for the quarter increased 1.1%, with a 5.3% jump in the U.S. International comps were negatively impacted by soft hardware sales.

Gross margin increased 30 basis points from 28.5% to 28.8%.

CEO J. Paul Raines commented, "Based on brisk sales trends of new software titles and motion controller launches, we are enthusiastic about our business and have raised our full year earnings guidance.” Which was true, as the company boosted their FY10 EPS outlook from a range of $2.58 - $2.68 to $2.63 - $2.69. Consensus was looking for an EPS of $2.62.

GME reaffirmed their comparable store sales numbers.

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