GameStop earnings miss estimates, revenue beats expectations, stock drops

GameStop reported earnings on December 8, beating on revenue but missing on other estimates.

Video transcript

INES FERRE: We've got adjusted earning-- adjusted loss per share for GameStop for its third quarter, coming in at $1.39. The Street was expecting a loss per share of $0.52. Meanwhile, the company's net sales came in at $1.297 billion for the quarter. That beat Street estimates of $1.9 billion. Now, when I say the Street, I'm talking really about three analysts because right now, only three cover the stock. There's one hold and two sells on this stock.

Taking a look at some of the headlines from this quarterly release, sales attributable to new and expanded brand relationships, such as Samsung, LG, Razer, Visio, contributed to the company's growth in the quarter. Also, inventory was 1.14 billion at the close of the quarter, compared to 861 million at the close of the prior year's third quarter.

Also, the company talking about establishing new offices in Seattle, Washington and Boston in Massachusetts, which are technology hubs and established talent markets. We know that there's a strategy for this company. Ryan Cohen, the chairman of the company, co-founder of Chewy, has really shaken things up at the company, but it's a bit of a black box as far as details about that strategy. There's been a slew of people that have been added to that C-suite, the CEO, the CFO, who come formerly from Amazon. So the strategy is for this company to become more of an e-commerce company, but again, few details so far have been given about that strategy. Adam, Emily.