GameStop’s (GME) fourth‑quarter results show improved profitability and tighter cost controls, even as revenue declined year over year. The video game retailer reported adjusted earnings per share (EPS) of $0.49, which topped the $0.37 consensus estimate and compares favorably with $0.30 in the prior-year quarter.
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Meanwhile, Q4 revenue totaled $1.1 billion, which missed the $1.47 billion forecast by Wall Street analysts. Sales were down 14% from a year earlier, reflecting continued softness in software and hardware demand.
During the quarter, selling, general, and administrative expenses totaled $241.5 million, down from $282.5 million last year. This points to management’s focus on streamlining operations.
Importantly, GameStop ended the quarter with $9 billion in cash, equivalents, and marketable securities, nearly double the $4.8 billion it held a year ago. The company also reported $368.4 million in Bitcoin and related receivables on its balance sheet.
Is GME Stock a Buy?
TipRanks’ AI Analyst maintained a Neutral rating on the stock with a price target of $25.00 per share. The price target suggests about 9.22% upside from current levels. According to TipRanks’ A.I. Stock Analysis, GameStop stock scores 62 out of 100.
The model highlights “improving profitability, stronger cash flow, and a healthier balance sheet” as positives, but weak technical trends and valuation concerns keep the outlook cautious.
