GameStop Results Miss Estimate, Q4 Outlook Weak; Stock Down 12%

(RTTNews) - GameStop Corp (GME) Thursday reported third-quarter net earnings of $56.4 million or $0.50 per share compared with $68.6 million or $0.58 per share last year.

Excluding items, adjusted earnings for the quarter were $0.57 per share.

Revenues for the quarter were $2.09 billion compared with $2.11 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.61 per share on revenues of $2.2 billion for the quarter. Analysts' estimates typically exclude special items.

For the fourth quarter, the company expects earnings of $2.08 to $2.24 per share, while analysts expect $2.28 per share.

For the full year 2014, GameStop now projects earnings of $3.40 to $3.55 per share, excluding the non-recurring charges of $0.07 per share. Earlier it expected earnings of $3.40 to $3.70 per share.

Analysts expect earnings of $3.68 per share for the year.

The company expects 2014 same store sales growth of 2 to 5 percent, down from prior guidance of 6 to 12 percent. For the fourth quarter, it expects this metric to range between a decline of 5 percent to an increase of 2 percent.

GameStop operates as a multichannel video game, consumer electronics, and wireless services retailer.