GameStop shares plummet on financial results
Analysts and investors unimpressed by retailer's "sloppy" second quarter
Shares in US-based specialist retail chain GameStop have fell by over 8 per cent following the release of its second quarter fiscal figures earlier this week.
Trading in the company opened down significantly, and stayed low throughout the day to close on $19.06, 8.2 per cent down from $20.76 the previous day.
GameStop's headline numbers pointed to a rise in total sales and net earnings, by 3.4 per cent and 4.2 per cent respectively, but that wasn't enough to impress analysts or investors.
Wedbush Morgan's Michael Pachter labelled the performance "sloppy" and noted that while the results were in line with guidance, they were below consensus numbers - while "questions remain about how GameStop will participate in digital distribution."
In a note to investors, Pachter lowered guidance on the company's share price to a "more realistic" $26.