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GameStop Corp.

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GameStop reported better-than-expected earnings in the fourth quarter of fiscal 2015 after missing the Zacks Consensus Estimate in the previous quarter. Adjusted earnings per share of $2.40 beat the Zacks Consensus Estimate of $2.25 and also increased 11.6% year over year. On the other hand, the company missed on revenues for the second consecutive quarter. Consolidated comparable-store sales (comps) rose 3.1% in the fourth quarter. The Technology Brands segment reported revenue growth of 57.4% to $177.9 million. In the reported quarter, the company added 202 net Technology Brand stores. Despite these positives, the basic concern was the softness prevailing in new software sales, raising apprehensions about the impact of digital downloads on the same. The company envisions earnings in the range of $3.90–$4.05 per share for fiscal 2016 and between $0.58 and $0.60 for the first quarter.

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