GameStop’s (GME) third-quarter results show sharp earnings growth from last year as the video game retailer benefited from cost discipline and its large digital asset holdings. However, GME stock declined about 4% in the extended trading session after sales came in below estimates.
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For its fiscal third quarter, GameStop reported adjusted earnings per share (EPS) of $0.24, which topped the $0.20 consensus estimate and compares favorably with $0.06 in the prior-year quarter.
Meanwhile, Q3 revenue totaled $821 million, which missed the $987.3 million forecast by Wall Street analysts. Sales were down 4.6% from a year earlier, reflecting softer demand in core retail operations.
During the quarter, selling, general, and administrative expenses totaled $221.4 million, reflecting a significant reduction from $282 million last year. This points to management’s focus on streamlining operations. Moreover, adjusted operating income rose to $52.1 million against $24.6 million loss in last year’s quarter.
At quarter’s end, Bitcoin Holdings was valued at $519.4 million, highlighting the company’s exposure to digital assets.
Is GME Stock a Buy?
According to TipRanks A.I. Stock Analysis, GME earns a score of 65 out of 100 with a Neutral rating based on Google’s (GOOGL) Gemini 2.5 flash model. It also assigns a price target of $23, implying a downside risk of 1.58% from current levels.
