GameStop (NYSE: GME) reported Q3 EPS of $0.67, $0.10 better than the analyst estimate of $0.57. Revenue for the quarter came in at $2.08 billion versus the consensus estimate of $2.03 billion.

Rob Lloyd, chief operating officer and chief financial officer, said, “We experienced solid growth in the third quarter, including double-digit growth across software, hardware, accessories and collectibles, underscoring GameStop’s leadership position in video games and our unique ability to satisfy all of our customers’ entertainment needs. Notably, software sales benefited from a compelling title line-up compared to last year, including strength from Red Dead Redemption 2 and Spider-Man, as well as the earlier launch of Call of Duty compared to last year. We are especially pleased with our performance in October, a month where The NPD Group disclosed that the U.S. physical video game industry grew by 46% while our U.S. physical video game revenue outpaced the industry and increased 63% resulting in market share gains.”

Mr. Lloyd added, “While our Black Friday and Cyber Monday sales were strong, we anticipate that our fourth quarter sales will skew more towards hardware than initially planned which, along with underperformance of certain titles, weakness in pre-owned and recent sales promotions, will result in fourth quarter earnings that are below our previous expectations. Importantly, we are evaluating all aspects of our business, including our store and omni-channel experience, cost structure, strategic and economic partnerships with publishing and platform partners, and relationships with customers and the services we offer to them, to enhance our business and drive growth and profitability over the long term.”

GUIDANCE:

GameStop sees FY2018 EPS of $2.55-$2.75, versus the consensus of $3.04.

For earnings history and earnings-related data on GameStop (GME) click here.