GameStop shares up after profit and revenue beats

Investing.com — GameStop beat Wall Street expectations for the second quarter, reporting stronger sales and swinging to a profit, helped by lower costs and higher income from investments.

The video game retailer posted earnings of 25 cents per share, above analysts’ average estimate of 16 cents.

Revenue rose to $972.2 million from $798.3 million a year earlier, topping expectations of $823.3 million.

Operating income came in at $66.4 million, compared with a loss of $22 million a year earlier, as selling, general and administrative expenses fell to $218.8 million from $270.8 million.

Net income surged to $168.6 million from $14.8 million in the same period last year. Excluding one-off items, adjusted net income was $138.3 million, up sharply from $5.2 million.

The company ended the quarter with $8.7 billion in cash, cash equivalents and marketable securities, compared with $4.2 billion a year earlier.

Its bitcoin holdings were valued at $528.6 million at quarter-end.

Shares of GameStop were up 2% in extended trading.

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