sonycowboy
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Mon Nov 15, 2004 11:10 AM ET
(Adds details; previously NEW YORK)
LOS ANGELES, Nov 15 (Reuters) - Video game retailer GameStop Corp.(GME.N: Quote, Profile, Research) on Monday reported a larger quarterly profit on strong sales of a broad range of video games and a boost in hardware sales from a redesigned PlayStation 2.
GameStop had a net profit of $12.1 million, or 21 cents per share, compared with a year-earlier profit of $10.7 million, or 18 cents per share. Sales rose 28 percent to $416.7 million.
Excluding a one-time charge, its profit was 24 cents a share, which met Wall Street analysts' expectations, according to Reuters Estimates.
"The launch of the new (Sony Corp. (6758.T: Quote, Profile, Research) ) PSTwo in early October, coupled with the late October launch of the (Microsoft Corp. (MSFT.O: Quote, Profile, Research) ) Xbox holiday bundle, drove hardware sales far beyond our original projections," GameStop Chief Executive Richard Fontaine said in a statement.
The Grapevine, Texas-based company raised its outlook on fourth-quarter per-share results to 81 cents to 84 cents, and boosted full-year profit view to $1.28 to $1.31 a share, before one-time charges.
Analysts were expecting a fourth-quarter profit of 24 cents and a full year profit of $1.28.
"In our view, the company is well positioned to exploit several potentially strong industry catalysts over the next several weeks and months," Harris Nesbitt analyst Edward Williams said in a note.
One week ago GameStop's chief competitor Electronics Boutique Holdings Corp. (ELBO.O: Quote, Profile, Research) raised its third-quarter forecast on strong software and hardware sales, leading analysts to raise their estimates for GameStop on expectations it would also outperform.
Shares in GameStop were off 3 percent at $22.80 in morning trading on the New York Stock Exchange. The stock hit June 2002 highs last week.
(Adds details; previously NEW YORK)
LOS ANGELES, Nov 15 (Reuters) - Video game retailer GameStop Corp.(GME.N: Quote, Profile, Research) on Monday reported a larger quarterly profit on strong sales of a broad range of video games and a boost in hardware sales from a redesigned PlayStation 2.
GameStop had a net profit of $12.1 million, or 21 cents per share, compared with a year-earlier profit of $10.7 million, or 18 cents per share. Sales rose 28 percent to $416.7 million.
Excluding a one-time charge, its profit was 24 cents a share, which met Wall Street analysts' expectations, according to Reuters Estimates.
"The launch of the new (Sony Corp. (6758.T: Quote, Profile, Research) ) PSTwo in early October, coupled with the late October launch of the (Microsoft Corp. (MSFT.O: Quote, Profile, Research) ) Xbox holiday bundle, drove hardware sales far beyond our original projections," GameStop Chief Executive Richard Fontaine said in a statement.
The Grapevine, Texas-based company raised its outlook on fourth-quarter per-share results to 81 cents to 84 cents, and boosted full-year profit view to $1.28 to $1.31 a share, before one-time charges.
Analysts were expecting a fourth-quarter profit of 24 cents and a full year profit of $1.28.
"In our view, the company is well positioned to exploit several potentially strong industry catalysts over the next several weeks and months," Harris Nesbitt analyst Edward Williams said in a note.
One week ago GameStop's chief competitor Electronics Boutique Holdings Corp. (ELBO.O: Quote, Profile, Research) raised its third-quarter forecast on strong software and hardware sales, leading analysts to raise their estimates for GameStop on expectations it would also outperform.
Shares in GameStop were off 3 percent at $22.80 in morning trading on the New York Stock Exchange. The stock hit June 2002 highs last week.