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Be the first with the news that moves the market- GameStop Corp. (GME) stock surged 40 per cent in early Wednesday trading after logging its first profitable quarter in two years
- The video game retailer logged an adjusted profit of 16 cents per share for Q4 2022, compared to a loss of 47 cents a year ago
- Revenue in Q4 fell 1.2 per cent to $2.23 billion
- GameStop Corp. (GME) opened trading at C$26.6 per share
GameStop Corp. (GME) stock surged 40 per cent higher in early Wednesday trading after logging its first profitable quarter in two years.
The video game retailer logged an adjusted profit of 16 cents per share for Q4 2022, compared to a loss of 47 cents a year ago. This came with a 16 per cent decline in costs during the quarter, as well as job cuts. Revenue in Q4 fell 1.2 per cent to $2.23 billion.
Net income for the quarter was $48.2 million, compared to a net loss of $147.5 million for Q4 2021. Cash, cash equivalents and marketable securities were $1.391 billion at the close of the quarter. Inventory was $682.9 million at the close of the period, compared to $915.0 million at Q4 2021’s close.
For the full fiscal year, GameStop generated net sales of $5.927 billion, compared to $6.011 billion for fiscal year 2021. The company also increased full-year sales in the collectibles category, an area the company hopes for long-term growth.
GameStop Corp. is a U.S. multichannel video game, consumer electronics, and services retailer. The company operates across Europe, Canada, Australia, and the United States. GameStop sells new and second-hand video game hardware, physical and digital video game software, and video game accessories.
The retailer’s run sparked a surge among other retail stocks.
While GameStop’s stock has lost 32 per cent since this time, last year, it has risen 29.5 per cent year-to-date and is up 49.9 per cent over the last five trading days.
GameStop Corp. (GME) opened trading at C$26.6 per share.
