Earnings Surprise Overshadowed by Steep Revenue Decline
GameStop reported adjusted earnings of $0.17 per share for the quarter ended April 30, significantly outperforming Wall Street’s estimate of $0.04. This marks the company’s fourth consecutive quarterly profit. However, revenue fell 17% year-over-year to $732.4 million, missing analyst expectations of $754.2 million. Net income came in at $44.8 million, a turnaround from a $32.3 million loss a year earlier.
While the earnings beat was notable, the 16.9% year-over-year drop in sales raised concerns about the company’s core operations. GameStop shares had gained nearly 36% this quarter, but the weaker revenue print now casts doubt on the sustainability of that momentum.
Bitcoin Strategy Draws Attention But Offers Limited Short-Term Support
The company did not add to its bitcoin holdings in Q1, after disclosing in May the purchase of 4,710 BTC, worth roughly $516 million at recent prices. Management confirmed no further acquisitions since then. GameStop’s pivot to crypto