GameStop Reiterates FY Adj. EPS View; Stock Down

(RTTNews) - GameStop Corp. (GME) reiterated its full year adjusted earnings per share guidance range of $3.66 to $3.86. Incorporating third quarter results, full year comparable store sales are now expected to range from +2.0% to +6.0%. Analysts polled by Thomson Reuters expect the company to report earnings of $3.91 per share. Analysts' estimates typically exclude special items.

In Monday's pre-market trading, the company's shares are Down $3.26 or 8.30% to $36.00.

Looking ahead for the fourth quarter of fiscal 2015, GameStop expects comparable store sales to range from -1.0% to +6.0%. Earnings per share are expected to range from $2.12 to $2.32, compared to adjusted diluted earnings per share of $2.15 in the prior year quarter. Analysts project fourth-quarter earnings of $2.37 per share.

GameStop's board of directors also declared a quarterly cash dividend of $0.36 per common share payable on Dec. 15, 2015, to shareholders of record as of the close of business on Dec. 3, 2015.

Paul Raines, chief executive officer, stated, "Our third quarter results were at the low end of our guidance range due to lower than expected new software and hardware sales and delays in Technology Brands store openings; however, our expectations for the full year have not changed. Looking ahead to the fourth quarter, a solid slate of new video games, coupled with contributions from our diversified AT&T, Apple and ThinkGeek businesses and our in-store collectibles offerings are expected to drive our fourth quarter results; therefore, we are reiterating our full year earnings per share guidance range of $3.66 to $3.86."

Including the one-time charges, GameStop's third quarter net earnings were $55.9 million, or earnings per share of $0.53, compared to net earnings of $56.4 million, or earnings per share of $0.50, in the prior year quarter.