GameStop Corp. (NYSE:GME) shares surged 5.72% during after-hours trading to $24.94 following strong second-quarter earnings and a special dividend announcement.
Check out the current price of GME stock here.
Q2 Earnings Beat Expectations
The Texas-based video game retailer reported strong second-quarter results, with net sales rising to $972.2 million from $798.3 million a year earlier. The figure easily beat Wall Street's estimate of $823.2 million. Earnings per share came in at 25 cents, ahead of the expected 16 cents. Net income jumped to $168.6 million, compared to just $14.8 million in the same quarter last year.
Mixed Segment Performance
| Segment | Current Revenue ($M) | Previous Revenue ($M) | Change ($M) |
|---|---|---|---|
| Hardware & Accessories | 592.1 | 451.2 | +140.9 |
| Collectibles | 227.6 | 139.4 | +88.2 |
| Software | 152.5 | 207.7 | -55.2 |
GameStop holds $8.7 billion in cash plus Bitcoin (CRYPTO: BTC) valued at $528.6 million.
Special Warrant Dividend Announced
The gaming retailer announced a special dividend, giving shareholders one warrant for every 10 shares they own as of October 3. Around 59 million warrants are expected to be distributed on or around October 7.
Warrant Details Drive After-Hours Rally
Each warrant has an exercise price of $32 and will expire on October 30. The warrants will trade on the NYSE under the ticker symbol GME WS. If fully exercised, they could bring in up to $1.9 billion for the company to use for general business needs and possible acquisitions.
“The transaction provides GameStop shareholders the option to participate in the Company’s capital raising on a non-dilutive basis,” the company stated.
GameStop's stock has traded between $19.31 and $35.81 over the past year, with a market cap of $10.55 billion. The company has a price-to-earnings ratio of 51.13 and an average daily trading volume of 6.59 million shares.
Price Action: According to Benzinga Pro data, GME closed at $23.59 on Tuesday, up 2.72%.
With a strong Growth score of 99.75, Benzinga’s Edge Stock Rankings indicate that GME has a short-term upward movement. Know how its momentum lines up with other well-known names.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
