GameStop fails to meet profit forecasts
Video game retailer Gamestop today posted lower profit numbers than expected, sending its stock price down four percent on heavy trading. Despite strong sales across the industry and last year's acquisition of competitor Electronics Boutique, net income for the company fell four cents per share from the same time last year.
The disappointing profit announcement goes against recent analyst reports that predicted profits substantially above estimates and halts a recent rally that had the company's stock up 28 percent in the last seven weeks. Apparently, the strong performance of video game companies like Electronic Arts and THQ have yet to translate to good news for the retailer. Still, with two new system releases coming by the end of the year, there may be reason to believe that the stock is still a "strong buy," as some analysts put it.
