GameStop Corp (NYSE: GME) reported on Wednesday its financial results for Q3 2021, highlighting a quarterly revenue of US$1.30 billion that exceeds the analysts’ mean consensus estimate. The topline figure is also an increase from Q3 2020’s revenue of US$1.00 billion.
The company attributes the increase in sales to brand relationships, such as Samsung, LG, Razer, and Vizio.
The gross margin for the quarter came in at 24.6%, down from 27.5% last year. But with SG&A expenses higher than gross profit, the company ended with an operating loss of US$102.9 million compared to last year’s loss of US$63.0 million.
Consequently, this made the company end the quarter with a net loss of US$105.4 million, down from US$18.8 million net loss for the same comparable period last year. The quarterly loss translates to US$1.39 per share, also exceeding the lowest analyst estimate of US$0.87 loss per share.
Further, the firm’s EBITDA came in at a loss of US$86.0 million compared to a loss of US$43.6 million in the previous year. The lowest analyst’s estimate for the firm’s EBITDA is at a loss of US$42.0 million.
The company ended the quarter with US$1.47 billion in cash, cash equivalents, and restricted cash. This puts the balance of the current assets at US$2.91 billion while current liabilities ended at US$1.53 billion.
In October 2021, the company terminated its chief operating officer Jenna Owens just 7 months into the position. The role is said to be absorbed by other members of the management team.
GameStop last traded at $173.65 on the NYSE.
Information for this briefing was found via Edgar and GameStop Corp. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
