A Mixed Bag
GameStop Corp. (GME) released its fourth-quarter financial results after the market close on Tuesday, February 28th, 2023. The report presented a mixed picture, with revenue falling short of expectations but adjusted earnings exceeding analyst estimates.
Total revenue for the quarter was $1.283 billion, missing the consensus estimate of $1.48 billion. This represents a year-over-year decline of approximately 28%.
Adjusted earnings per share came in at 30 cents, exceeding analyst expectations of 8 cents per share.
Hardware and accessories revenue totaled $725.8 million.
Software revenue came in at $286.2 million.
Collectibles revenue reached $270.6 million.
GameStop reported net income of $131.3 million for the quarter, up from $63.1 million in the same period the previous year.
The company ended the quarter with approximately $4.78 billion in cash, cash equivalents, and marketable securities.
GameStop did not hold a conference call to discuss its quarterly results.
In a separate press release, GameStop announced that its board had unanimously approved an update to its investment policies to include Bitcoin as a treasury reserve asset. This move follows reports that the company was considering adding Bitcoin and other crypto assets to its balance sheet, which contributed to a surge in GameStop's share price last month.
GameStop has previously made forays into the crypto space with the launch of wallets for managing crypto and NFTs, as well as access to its NFT marketplace. However, the company closed down this offering in 2023 due to regulatory uncertainty.
In its third-quarter financial results report in December 2022, GameStop announced that it was freeing up CEO Ryan Cohen to bet on stocks in order to improve the company's financial standing. The fourth-quarter release did not provide an update on this initiative.
GameStop shares were up 6.50% after-hours, trading at $27.05 at the time of publication on Tuesday, February 28th, 2023.