GameStop Surges After Reporting First Profit in Two Years

(Bloomberg) -- GameStop Corp. reported a surprise profit in the fourth quarter and beat analysts’ estimates for revenue, sending the shares soaring as much as 39% in extended trading.

Net income was $48.2 million, the first profit in two years, and compared with a loss of $147.5 million a year earlier, the Grapevine, Texas-based video game retailer said in a statement Tuesday. Earnings per share were 16 cents, compared with a loss of 49 cents a year earlier. Net sales fell 1.2% to $2.23 billion in the three months ended Jan. 28, but that was higher than analysts’ projections of $2.18 billion.

The shares surged to a high of $24.50 after hours in New York. Very few analysts currently cover the so-called meme stock, which has fluctuated wildly over the past two years.

“GameStop is a much healthier business today than it was in the start of 2021,” Chief Executive Officer Matt Furlong said on a call with analysts. “We have a path to full-year profitability.” The company didn’t offer an outlook for 2023.