Overview
- GameStop, which reported results Tuesday, posted adjusted earnings of $0.49 per share versus $0.37 expected as revenue fell to $1.10 billion from $1.28 billion a year ago and missed forecasts.
- The company finished the quarter with about $9.0 billion in cash and marketable securities, while its Bitcoin holdings stood at $368.4 million after an unrealized drop of roughly $151 million from the prior quarter.
- Sales mix kept shifting toward collectibles, which rose to $365.0 million and about one-third of revenue, as hardware and software categories declined in a market moving toward digital downloads and subscriptions.
- Cost cuts continued to help profits, with selling, general and administrative expenses down to $241.5 million and adjusted operating income up to $147.7 million, even as net income eased to $127.9 million.
- The company offered no earnings call or guidance and disclosed an agreement tied to selling its French operations, with a shareholder vote pending on a proposed $35 billion pay plan for CEO Ryan Cohen and ongoing but unannounced deal speculation.