Shares of GameStop (NASDAQ:GME) were little changed in after-hours trading after the company released its earnings report. The company posted a loss of -$0.31 per share, which was lower than analysts’ projections of -$0.28 per share. Revenue fared no better, as GameStop posted $1.19 billion in sales against projections calling for $1.25 billion.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Despite the misses, GameStop had some positive points to bring out. It noted that collectibles sales remained solid. Further, sales from either new brands or previous brands that expanded their relationships with the company also delivered excellent results.
In addition, GameStop also launched layoffs just ahead of the earnings announcement. It didn’t announce the layoffs, nor would it confirm the reports. However, several GameStop employees changed their LinkedIn profiles to reflect a change in employment. Former director of the company’s logistics and transportation team, Mickey Kalish, offered comment. He noted that his operation within the company had been “heavily impacted” by the move.
Overall, analysts have a Moderate Sell consensus rating on GME stock. With an average price target of $16 per share, GameStop currently presents a downside risk of 28.12%.
