GameStop shares stumble after company predicts lower profit in 2016
GameStop Corp. shares fell more than 6% late Thursday after the company reported 2016 earnings expectations slightly below Wall Street consensus. The game retailer reported adjusted net earnings of $251.6 million, or $2.40 a share, in the fourth quarter, compared with adjusted net earnings of $235.5 million, or $2.15 a share, in the prior-year quarter. Sales reached $3.53 billion in the quarter. Analysts polled by FactSet had expected the company to report adjusted earnings of $2.25 a share on sales of $3.57 billion. GameStop said the stronger dollar will continue to hit its bottom line this year, to the tune of 5 cents a share to 8 cents a share on its full-year earnings. The company said it expects full-year 2016 earnings between $3.90 a share and $4.05 a share, below analyst estimates of $4.08 a share for the year. Shares ended the regular session Thursday down 0.3%.
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