Source: quietbits / Shutterstock.com
GameStop (NYSE:GME) stock is taking off on Wednesday after the video game retailer posted a profit in its fourth-quarter earnings report.
Starting with that profit, the company’s EPS came in at 16 cents. That’s a massive improvement over its losses per share of 49 cents from the same time last year. It’s also better than the -13 cents per share Wall Street was expecting.
To go along with that, this marks the first time in two years that GameStop has reported a quarterly profit. Considering the meme status of GME stock, it’s likely the company’s shares will continue to rally on today’s news. That may be caused by a short squeeze from empowered shareholders.
In addition to that earnings beat, GameStop also reported revenue of $2.23 billion. While that’s a slight drop from the $2.25 billion reported in Q4 2021, it still comes in above analysts’ estimate of $2.18 billion.
Still No Outlook For GME
Investors wondering how the company expects to perform in the coming quarters are out of luck. The video game retailer stopped providing guidance when the Covid-19 pandemic started and has yet to bring it back to its earnings reports. Even so, we know what Wall Street is looking for in 2023. That includes full-year EPS of -$1.31 alongside revenue of $5.88 billion.
GME stock is up 47.9% as of pre-market trading on Wednesday!
There’s more recent stock market news worth diving into below!
We’ve got all of the hottest stock market news traders need to know about on Wednesday. Among that is what has shares of Virgin Orbit (NASDAQ:VORB) rising, as well as the biggest pre-market stock movers from this morning and more. You can find all of that news at the following links!
More Wednesday Stock Market News
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
