GameStop Shares Drop After Missing Consensus For Q4 2021 Bottomline Results

GameStop Corp (NYSE: GME) last night released its financial results for Q4 and full-year 2021. While the firm beat the consensus for revenue estimates, it pretty much missed everything else.

For the quarter, the company recorded US$2.25 billion, beating the consensus US$2.16 billion and also an increase from Q3 2021’s US$1.30 billion and Q4 2020’s US$2.12 billion.

However, gross margin came down to 16.8% this quarter from last quarter’s 24.6% and last year’s 21.1%. This also missed the consensus of 24.6%.

The largest misses came in at the bottom line. While the consensus projected an operating income, the firm recorded an operating loss of US$166.8 million.

Following the earnings release, the firm’s shares dropped by as much as 15% post-closing bell on Thursday, but some are still wondering why.

Further down, the company ended the quarter with a net loss of US$147.5 million, down from the US$105.4 million net loss last quarter and the US$80.5 million net income for the same comparable period last year. The quarterly loss translates to US$1.94 per share.

Calibrating for financial items, the firm’s adjusted EBITDA came in at a loss of US$126.9 million, missing the consensus of a positive figure at US$92 million.

For fiscal year 2021, the firm also increased its revenue to US$6.01 billion from 2020’s US$5.09 billion. However, it also recorded a wider net loss of US$381.3 million from last year’s net loss of US$215.3 million.

Adjusted EBITDA for the year also came in at a loss of US$236.9 million, down from a loss of US$149.4 million last year.

The company ended the quarter with US$1.27 billion in cash and cash equivalents. This puts the balance of the current assets at US$2.60 billion while current liabilities ended at US$1.35 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 $87.70 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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

GameStop Crashes 17% In Pre-Market Trading After Announcing Plan To Sell 75 Million Shares On Open Market

After speculators spent all evening yesterday estimating the gain of Roaring Kitty’s portfolio on GameStop...

Friday, June 7, 2024, 08:29:21 AM

GameStop Finally Launches NFT Marketplace, Market Shrugs

GameStop Corp (NYSE: GME) yesterday met its commitment made earlier this year when it announced...

Tuesday, July 12, 2022, 09:26:17 AM

GameStop Shares Pop 48% On Surprise Q4 Profit, Prompting Frenzied Short Covering Rally

After the regular market close on March 21, GameStop Corp. (NYSE: GME) reported a surprise...

Wednesday, March 22, 2023, 07:33:00 AM

Citron Research Exits GameStop Short Position, Says It Respects ‘Market’s Irrationality’

Well-known short-seller Citron Research announced Wednesday that it had closed its short position in the...

Thursday, June 13, 2024, 10:09:43 AM

This Is Not Good News -GameStop’s CFO Is Abruptly Fired Without Cause

On July 7, GameStop Corp. (NYSE: GME) announced the firing of CFO Mike Recupero, with...

Saturday, July 9, 2022, 09:00:00 AM